In this ongoing worst scenario of Pandemic,the micro units are the units who are bearing the grunt & are battling for survival & they need special stimulus package to come out of the heat,COSIA Vidarbha demanded to MSME Ministry Chairman Mayank Shukla said that there are more than 90% of MSME industries which fall under micro level catagory.
Their need though may be very limited but play a very vital role in manufacturing and service sector activities as they are complimentary to SME sector.Industries having less than one crore of investment in plant and Machinery, employment of less than 20 workforce and turn over below 5 crores fall under micro level category.
Such industries many a times do not qualify to participate in open Tender Bid floated by PSUs or Coporate sector, because of their limited resources and they are mostly dependent on SME sector.Small and Medium scale Industries procure their orders from PSUs and Corporate and in turn outsource their requirements through these micro level Industries who are experts in their specific field.
The business and payments cycle of such micro level Industries are totally dependent on bigger players ( SME sector).CA Julfesh Shah,Vice Chairman said that that moreover such micro category industries are not equipped to fulfil statutory Government compliance requiremenrt at an appropriate time.In the supply chain Small and medium scale industries who directly procure the orders through open tender system from PSUs or Government Institutions may be termed as Tier 1 or Tier 2 suppliers and the micro level Industries who are expert in their specific field may be termed as Tier 3 suppliers. Since such micro level Industries working and payment cycle is dependent on Tier 1 or Tier 2 suppliers to main customers their working is not recognised, when it comes to procurement of loan, financial assistance or Goverment subsidy to MSME sector .Although their contribution to manufacturing or service sector in terms of working or generating job opportunities is significant and their number is as high as more than 90% in total MSME units ,they are the most neglected lot. Therefore a need to form a separate cell to take care and protect these units has been felt,opined Shah.
COSIA Vidarbha also demanded that as their volume is as high as more than 90% and job creation ability is also significant, their financial need is less than 10% of the total MSME sector needs.Therefore they should be financed at a much lower lending rates. Moreover they should be protected under an umbrella to have a channelised payment cycle from Tier-1 & Tier 2 vendors. They have a significant workforce but less in numbers in each units, such workforce need to be covered under group social security act. All these things can be taken care only if there is a special separate cell for Micro level Industries within the MSME ministry itself,suggested COSIA.