Coming down heavily on 13 times increase in lending rates for medium and small scale industries by the Reserve Bank of India in the last one year, the Laghu Udyog Bharati (LUB) said the unprecedented hike made the sector out of gear. Newly elected LUB president Shri VJ Vaghasia while talking to mediapersons in New Delhi on November 3 said the interest rate for micro and small industries should be equivalent to agriculture sector by way of interest subsidy and adequate credit flow under credit guarantee scheme. LUB general secretary Shri OP Mittal was also present at the press conference.
The LUB welcomed the government decision regarding SME exchange proposed by the government, but it stressed the need that its compliance procedures should be simple. He said the excise exemption for small industries should be increased to Rs 5 crore. The LUB also welcomed the new purchase policy announced by the government for government departments and state-run enterprises, where 20 per cent of the government purchases are reserved from micro and small enterprises. But it suggested that the policy should be implemented immediately instead of within three years.