Industry

NAREDCO & Assocham ask government for $200 billion relief package

Stressing on the need for a one-time rollover for debt restructuring as also provision and working capital requirement as a ‘must do’ as part of the economic stimulus package, Niranjan Hiranandani, national president, NAREDCO & Assocham, said more credit supply must be extended to industries across the economy.

NAREDCO, the industry body of real estate developers and industry association Assocham have asked the government to provide a relief package of more than $200 billion, which is around 10 % of nation’s Gross Domestic Product (GDP) for the Indian industry.

Theyvsaid the amount can be pump into the economy in a staggered manner to retrieve the business cycle without incurring further loss.

“The industry seeks working capital to ensure that the Indian economy doesn’t tank; business organizations don’t default and saddle banks with NPAs, as also cause job losses,” Niranjan Hiranandani, national president, NAREDCO & Assocham, said at a video conference.

Stressing on the need for a one-time rollover for debt restructuring as also provision and working capital requirement as a ‘must do’ as part of the economic stimulus package, he said more credit supply must be extended to industries across the economy.

“We need a stimulus of over $ 200 billion with an ability to go up to $ 300 billion with $100 billion provided immediately, $100 billion in 4 months and the last $100 billion in 8 months,” Mr Hiranandani said.

He said government must reduce GST across the board by 50% for 3 months and 25% for the fiscal. The final GST due should be payable in 6 quarterly instalments starting October 2020 with no interest.

“Final income tax of FY 2019-2020 and advance tax FY 2020-2021 should be payable starting October 2020 in 6 quarterly instalments with no interest and 5% GST on under construction real-estate to be scrapped/to be given full input tax credit,” he added.

The industry bodies have asked for an one time restructuring of loans for all corporates and reduction of interest rate/repo-rate by another 100 bps by the RBI among others.

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Printable version | Jun 2, 2020 5:54:43 AM | https://www.thehindu.com/business/Industry/naredco-assocham-ask-government-for-200-billion-relief-package/article31302518.ece

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