Laghu Udyog Bharati condemned the action of certain banks, which have flouted the spirit and intent of RBI by purchasing the Government securities worth approximately Rs 1,13,000 crore instead of increasing loans to micro and SSI units. The LUB demanded a deterrent action against such banks. The demand was made at the National Executive Committee meeting of the organisation held in Vadodara, Gujarat, from February 27 to March1. The resolution adopted at the meeting said at the time when the micro and SSI units are under the threat of their survival, the government should conduct meet/ seminars in collaboration with the associations like LUB and take up their issues/ grievances to solve them to boost their morale. The resolution also said that all new technological development from research institutions and IITs should be made available to micro and SSI units free of cost. There meeting also demanded that credit to the SSI sector be extended on priority to the extent of at least 15 per cent of total commercial loans granted by the banks and rates of interest should be no more than what is applicable to agriculture sector i.e. 7 per cent.
(FOC)
