Micro, small and medium enterprises (MSMEs) in the State have sought a relief package of ₹5,000 crore from the Union government and a ₹2,000-crore package from the State government to overcome sectoral setbacks in the wake of COVID-19 pandemic.
The Kerala State Small Industries Association (KSSIA) has appealed to the Union Minister for MSMEs Nitin Gadkari to consider setting aside a sum of ₹5,000 crore to fight the distress caused by the pandemic.
The association said industries in Kerala had suffered two consecutive floods in 2018 and 2019, and the spread of COVID-19 pushed the sector further into dire straits.
Under the circumstances, the government must “impress upon banks and other financial institutions to sanction additional need-based working capital without insisting on additional collateral security”, said the industries association. If the financial institutions did not relent, the government should step in and extend financial assistance as a grant to cover the interest burden for the next 12 months, added the entrepreneurs.
They also appealed to the government not to collect penal interest or levy penalty on delay in payment of GST, ESI, EPF and other taxes and licence fee. The industries also want the government to stop all revenue recovery proceedings against MSMEs for six months.
In their appeal to Chief Minister Pinarayi Vijayan, MSMEs sought a ₹2,000-crore relief package out of the ₹20,000-crore intervention announced by the State government.
The industries also want a 12-month moratorium on repayments to banks and financial institutions, including Kerala Financial Corporation and Kerala State Industrial Development Corporation.
