The Madurai District Tiny and Small Scale Industries Association said that although the Reserve Bank of India has announced the moratorium for repayment of term loan and EMIs, they are yet to waive interest on working capital and term loan at least for another six months.
In a press statement, the association said the current time period set for the deferment of interest on working capital is three months. However, no micro, small or medium industry has been functioning for the past 10 days and they cannot resume a regular production at least for another three weeks.
“We are compelled to pay full salary to our workers which we accept as our moral responsibility. In these circumstances mere deferment of interest will not be sufficient to rejuvenate the ailing MSMEs.”
Since the CoVID-19 pandemic has had a serious impact on the MSME sector, it needed a special incentive package.
Otherwise it would adversely affect the economy and lead to large-scale unemployment.
Moreover, big business houses and distributors must help small units continue their business for their mutual benefit and extend the credit time limit by 60 days so that they can settle their purchase bills, the statement added.
