The micro and small enterprises (MSEs), hit hard by the ongoing economic slowdown, have sought speedy implementation of the K C Chakrabarty Committee recommendations to help the beleaguered small units.

“Successful governments have offered only lip services. We hope the new government looks into the nitty-gritties of uplifting micro and small industries (MSEs) from the morass they are in at present,” DE Ramakrishnan, president of industrial and financial reconstruction association for small and tiny enterprises (IFRASTE) said.

Ramakrishnan said the Chakrabarty committee recommendations on sickness and rehabilitation and covering host of other issues and problems confronting the MSE sector, should be implemented in letter and spirit along with interest subvention/concessional rate of interest for MSEs.

“As the MSEs are struggling to survive on the back of economic slowdown, there are some areas that require immediate government intervention. The government measures announced so far through stimulus measures have not reached the MSEs. The ad hoc increase in working capitals loans have also not been provided by commercial banks,” said K Gopala-krishnan, general secretary, Tamil Nadu Small and Tiny Industries Association.

“Other key issues include specific decrease in interest rate and some marketing support from government for engineering units. Funding support alone is not adequate for MSEs, which are grappling with dwindling order levels. SMEs clusters such as Ambatuur, Guindy and Hosur have shut down their units for want for funds and orders,” he noted.

“We request the government to direct the railways, ports and defence to procure 20-30 per cent of engineering parts from MSEs. This will aid the units to sustain operations, he said.

A representative of Ambattur Industrial Estate Manufacturers’ Association pointed out that micro and small enterprises sector has been one of the worst hit as a result of the credit crisis. Despite government stimulus measures, access to easy credit still remains an issue.

“There is an urgent need to boost the flow of credit to all productive sectors of the economy, particularly to MSMEs, to aid the process of economic recovery, according to Yashika Singh, head of economic analysis at Dun & Bradstreet India.

About 95 per cent industrial units in the country come under MSME sector contributing 35 per cent of total exports; 40 per cent of the nations domestic consumption is provided by MSMEs.