Dear Yerram Raju,
I read your both article with great interest, in DC & Business Line today.
I want to bring one point to your notice that, I was very young when banks where nationalized but for last few years, I am feeling that govt had a very selfish motive to promote the small-scale industry as at very low investment job is getting created.
Also, it is very well known that the lifespan of MSME will be in the range of 8 years so they can postpone the unemployment problem by that many years. So they have played very badly with youth.
Also, as your comment for bankers, they have become thick skinned and system driven but not knowledge/information based. I fully subscribe.
I think, we for MSME, where total NPA is @ 84000cr as per MSME pulse, shall be tackled where according to me 1cr jobs can be retained.
According to me, to create 1 job in MSME, we require around 50000 to 3lacs capital investment but to retain 1 job in the revival of the sick unit, fresh fund required will be in the range of 15000 to 25000/- if they have got little liberal approach.
As I understand, the undertone of Sunil Mehta committee report is to resolve rather recover.
If Govt/RBI/Bank can formulate policy towards this, many TIHC and Growth Idea Lab can feel the gap of trust between bank and entrepreneur.
I hope, certain of my observation can be put into thinking process at economist or policymakers.