The on-going crisis of lockdown has created end number of troubles for different business sectors. In view of the financial crisis, the Federation of Automobile Dealers Associations (FADA) on Tuesday sought re-inclusion of automobile wholesale and retail trade, including workshops, under the ambit of MSME Act.
Auto dealerships used to fall under MSME sector, but were excluded from the same after Government issued a notification in 2017. “The Government few days back announced a 3 lakh crore collateral-free automatic loans for MSME sector. There were also other benefits including reclassification of the MSME definition. While companies falling under the Act will be able to avail the benefits, auto dealers are excluded out of the same due to a 2017 notification,” FADA President Harsharaj Kale said. Auto dealers were earlier allowed under the MSME definition and their workshops in most cases operate under the rules of Factories Act.
The subsidies and incentives received under the MSME division will provide much needed relief to the sector which provides direct and indirect employment to lakhs of people.
Recently Union Minister Nitin Gadkari had assured review of the 2017 circular and re-inclusion of auto dealers back into MSME as most of the auto dealerships, are small and medium family-run enterprises.