FAPI urge PM for one year moratorium to SMEs

Hyderabad, Nov 20 (UNI) The Federation of Andhra Pradesh Industries (FAPI) today urged Prime Minister Manmohan Singh to direct the Reserve Bank of India to issue orders to all the nationalised banks to give one year moratorium to the Small and Medium Enterprises to bail out the industry.

In a letter to Prime Minister, FAPI President B V Rama Rao said due to worldwide financial recession, small and medium enterprises in Andhra Pradesh were becoming sick and they were on the verge of NPA with banks.

The small and medium enterprises provide lot of employment opportunities and 42 per cent exports were from this sector, he added.

He said in India, bank lending interest rates were very high and should be reduced to four per cent for Micro, Small and Medium Enterprises in order to compete with global market.

He urged the Prime Minister to take up the matter with RBI and save the industry in Andhra Pradesh.

UNI BR VA ROY 1639