BUSINESS

‘Robust banking sector in NE can solve sluggish investment problem’

investment problem

GUWAHATI: Finance ministry on June 11 convened a meeting with Union Minister Nirmala Sitaraman in chair and was attended by Anurag Thakur, MoS  Finance, Secretary Finance, Chief economic Adviser, CBDT Chairman, other secretaries and top Dy Governor RBI, Chairman of SBI, Chairmen of other PSU and private sector banks and financial institutions and  other  dignitaries. On invitation of the ministry,  was represented by Sandeep Khaitan, FINER Director. He  took the opportunity to highlight that the region still has a long way to go in accessing basic banking requirements of people and more specifically the MSMEs and first generation entrepreneurs that form the bulk of FINER’s membership network and industry as a whole. He submitted that senior officials of  PSU Banks  posted in the region need  to  be given adequate empowerment and delegation to make  decisions without which there remains a huge gap in financing needs of local enterprises. He submitted that Northeast should not be a place for meting out punishment postings. It was  emphasized that a robust  Banking sector in the region can provide practical solutions to tackle the sluggish investment  scenario and gradually pave the way for development of capital markets, bond markets and other derivatives. Khaitan also  pointed out that despite a clear policy framework, industries’  claims for CGST/ IGST refunds remain unsettled for more than one and half years and he hoped that the new Finance Minister would look into the inadequacies in the mechanism. He raised the issue of Tax Terrorism impacting private sector confidence and investments, and pleaded for more growth oriented policies which could spur private sector investments. He raised the specific issue of companies in the North East being forced to be non compliant, as they were being unable to find full time company secretaries in service in absence of adequate qualified members. The Finance Minister gave  a patient hearing  and  appeared  to be in agreement on the critical issues affecting the NE.

Earlier, Union Ministry of  Finance  and Corporate Affairs  had  sought  suggestions  from industry associations on proposed  changes in the Tax structures. FINER submitted  a  detailed memorandum  suggesting  various  changes   in Direct and Indirect  Taxes. Concrete  suggestions have also  been submitted  for  providing   adequate  budgets  for North East Industrial Development Scheme and  large  investments  in infrastructure  sector.  Modifications in tax  structures have been suggested to suit the middle class and small businesses  that would encourage consumer spending, stated a press release.

 

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