The Micro, Small and Medium-scale Enterprises (MSMEs) in the district have appealed to the Union Government to pay wages to workers for April from the unclaimed ESI funds with it.
Heads of 19 industrial associations told press persons here on Friday that the MSMEs usually had cash flow for just one or two weeks.
Most of the banks were yet to reverse the interest deducted this month though the RBI had issued moratorium guidelines to the banks for three months.
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This had affected the liquidity availability with the industries.
Though most of the industries had paid wages to the workers for March, they need government support to pay the April wages.
R. Ramamurthy, president of Coimbatore District Small Industries Association, said the industries had paid the workers for last month.
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During the lockdown period of April, the units would not have the capacity to pay the entire month’s salary without running their business.
Hence, they would not be able to pay the salaries and wages for the workers for the entire month.
The salaries and wages should be paid by the government, he said.
According to Jayakumar Ramdass, president of Coimbatore Industrial Infrastructure Association, the ESI is an insurance and it should be used in times of emergency. The unclaimed funds with ESI should be used to pay the wages.
Support from banks
Mr. Ramamurthy said the main requirement of the MSMEs now was support from the banks. The government should issue directions to RBI, which in turn should issue instructions to the banks.
“There should be directions and not guidelines. The banks need to trust the MSMEs. We are unable to get the benefits that have been announced for the MSMEs,” he said.
“While the COVID-19 curve should flatten, the GDP curve should start going up,” added G. Ezhil, president of the Institute of Indian Foundrymen, Coimbatore. Only a stimulus package could help the industries to restart activities.
V. Lakshminarayanaswamy, president of the Indian Chamber of Commerce and Industry, Coimbatore, said the industries did not know how many workers would return to work when the factories reopened. Many migrant workers would want to return home. So, labour availability would be a problem.
“The government should extend the March 31 deadline for all compliances and payments to May 31,” he said.
The association presidents said they were willing to reopen only when the situation was under control. Only those industries that were into production of healthcare products and those who had export obligations were asking permission to operate now.
Grant sought
The industries also sought ₹5 lakh grant to micro units and ₹15 lakh grant to small-scale units from the State Government. They jointly submitted their demands to the Central and State Governments on Friday.
A special package that would ensure fund availability to the industries to restart was the need of the hour, they said.