The Centre and the Tamil Nadu Government must announce a policy on financial and marketing support for the small scale sector and ensure its implementation, said Mr K.V. Kanakambaram, President, Tamil Nadu Small and Tiny Industries Association.
Addressing the press, Mr Kanakambaram said that while the authorities announced specific schemes or expressed an intention to support the sector, they did not follow up on them. Therefore, while the developed countries have a thriving small-scale sector, it is languishing in.
For instance, the banks have ignored the credit guarantee scheme, under which, they must extend loans up to Rs 25 lakh without demanding collateral. Also, the norms for dubbing an account a non-performing asset have become more stringent and lack flexibility.
