Kochi: The Kerala State Small Industries Association (KSSIA) has appealed to the Reserve Bank of India (RBI) to roll back its decision to increase in Repo Rate which had caused huge problems to the sagging KSSIA.
This has led to the interest rate zooming up by 1.50 per cent triggering multiple problems to the industry which is yet to recover from the losses suffered by it due to the Covid impact.
The interest rate, which was 7.30 per cent in June, has gone up to 8.80 per cent due to increase in repo rate. Sudden rise of about 1.50 per cent has badly hit the Micro Small and Medium Enterprises, KSSI state president A Nissaruddin has said.
He said that the industry was over burdened by many other issues and the increase in the interest rate has added to the injury. About 2.5 lakh MSMEs in Kerala provide employment to over two million people.
Fixed charge on connected power load, statutory payments like PF and ESI, rentals are the other issues haunting the industry. One of the worst-hit sectors is export-oriented units. The KSSIA has already appealed to the state government to provide a special package to the sector.
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