The Federation of Telangana Chambers of Commerce and Industry (FTCCI) has appealed to the State government for a number of support measures for industries such as waiver of penalties and interests and creation of a fund for micro, small and medium enterprises (MSMEs).
Sharing the suggestions/recommendations made to the government, in the backdrop of COVID-19 outbreak, president Karunendra S. Jasti said FTCCI and industry understood the importance of social distancing and closure of non-essential shops. At the same time, as an industry body, FTCCI was “concerned for financial health of the all industrial units, large scale and MSMEs”, he said.
Pointing to how industrial units work on a precarious state of finances and any minor disruptions in their work flow was bound to upset production and cash flows, he said loss and difficulties of the workforce was predictable. “It is equally difficult for the units and businesses to pay salaries by taking additional loans while foregoing the production and revenues,” he said in a statement.
Figuring at the top of the list that FTCCI submitted to the State government was an appeal for waiver of penalties/interest on delayed payment of power bills, water bills, property taxes, license fee and any other statutory payments to be made by March 31 for three months. Extension of time for payment of GST without penalties and interests for three months — up to June 2020 — is another suggestion.
Mr. Jasti said a fund should be set up for MSMEs and from that, working capital loans disbursed at no or minimal 2-3% interest to the units. Likewise, to tide over financial crisis of the units, the government was urged to issue pending industrial incentives by April-end.
The umbrella body also wanted the government to utilise labour welfare fund for payment of wages to workers, thus compensating them for the loss of livelihood during the lockdown period. FTCCI wanted extension of time to claim industrial incentives for the first half of 2019-20 as well as the deadline for the units concerned to pay VAT.
