Kollam: The Kerala State Small Industries Association has sought the government's immediate intervention to revive the industry facing a serious financial crunch.
It also wanted a moratorium on repayment and rescheduling of loans. “The hitches in the SARFAESI Act have pushed a majority of these industries on the verge of closure,” Len Philip, the association's district president, said.
“Two lakh small-scale initiatives are operating across the state. It is also India's biggest job provider, after the agriculture."
They say the term to initiate recovery measures on defaulters by financial institutions has been brought down to just 90 days a year.
“It resulted in several loans turning non-performing assets (NPA) which will, in turn, lead to the closure of the industry," he said.
“The 2016 currency ban and conversion to GST last year have also been a blow to the already struggling industries."
They hope rescheduling loans would help infuse fresh working capital. “This only could save the industry. Several of the entrepreneurs are even on the verge of suicide,” Mr Len added.
