The ongoing geopolitical tensions in West Asia and global economic uncertainties are beginning to impact industries in Gujarat. To provide relief to micro, small, and medium enterprises (MSMEs) facing challenges such as rising logistics costs, supply chain disruptions, and working capital shortages, the Southern Gujarat Chamber of Commerce and Industry (SGCCI) has made significant demands to the state government.
The Chamber's President Ashokbhai Jirawala wrote to Gujarat Chief Minister Bhupendrabhai Patel requesting a complete waiver or substantial relief on the stamp duty applicable to mortgage deeds for loans taken under the Government of India's Emergency Credit Line Guarantee Scheme (ECLGS 5.0). The letter mentions that the current circumstances have adversely affected global trade, exports, and supply chains. Thousands of MSME industries in Gujarat, including Surat, are struggling with rising production costs, delayed payments, and market uncertainties.
At this time, the ECLGS 5.0 scheme could play a crucial role in providing additional financial support and working capital to industries. However, obtaining loans under this scheme requires mortgaging assets, which incurs heavy stamp duty on mortgage documents. The Chamber believes that this additional financial burden is becoming a new challenge for small and medium enterprises instead of providing relief.
SGCCI has urged the state government that if stamp duty is waived for loans taken under ECLGS 5.0, it would make it easier for MSME units to obtain loans, strengthen the cash position of industries, and ensure smooth production activities even amid global economic challenges. Additionally, it would further enhance Gujarat's image as an 'industry-friendly state.' A copy of this demand has also been sent to the state's Home Minister Harsh Sanghvi, Finance Minister Kanubhai Desai, Additional Chief Secretary of the Revenue Department Dr. Jayanti Ravi (IAS), and Additional Chief Secretary of the Finance Department T.
Natarajan (IAS), requesting a prompt positive decision on the matter. Chamber President Ashokbhai Jirawala expressed hope that under the Chief Minister's positive outlook, the state government would soon make a decision that would provide relief to millions of families associated with the textile, diamond, and other MSME sectors, helping the industry overcome the current economic challenges.
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