The nationwide lockdown enforced to check COVID-19 has aggravated the crisis faced by the MSME fabrication units in Tiruchi region.
MSME units which are entirely dependent on the public sector BHEL, Tiruchi, for sub-contracting orders are in deep trouble. The units were already facing crisis due to the general recession for the last four years that had turned several production units into Non Performing Assets and pushed many others into disstress, said R. Rajappa Rajkumar, president, BHEL Small Industries Association, in a letter to Prime Minister Narendra Modi.
The 21-day shutdown has burdened the industries that had already turned sick due to demonetisation, implementation of Goods and Services Tax and delayed payments from prime customers. “Since the promoters and workers are without income, a disastrous situation has arisen warranting intervention by the government for revival of the MSME sector,” Mr. Rajkumar said.
Irrespective of whether the assets of the MSME units were categorised as standard, sub-standard or NPA, financial support must be sanctioned with immediate effect as grant or interest-free loan to meet expenses towards salaries and other critical commitments. Otherwise workers would be pushed into penury, he cautioned.
Similar to the favourable moves for postponing the deadline for filing Income Tax returns, 2020, and filing GST returns for the current and following months to June 30, the Centre must consider the BHELSIA’s request made earlier for payment of arrears of GST in instalments along with the current payment with the holiday period of six months without cancelling the GST registration.
Legal protection should be provided to the MSME units for making arrears in Provident Fund and Employees State Insurance dues in instalments with the holiday period of six months. Considering the slow progress of the market conditions, banks must consider interest subvention of up to 5%, Mr. Rajkumar emphasised.
Alongside, a suitable rehabilitation programme for stressed units must be considered in consultation with promoters for viable operation. The Employees State Insurance Corporation must come forward to pay wages for workers for the lockdown period. All repayment commitments for housing loan, jewel loan and personal loan must be postponed without any penalty.
As a leading MSME organisatio n with 450 members, BHELSIA’s representative must be included in the monitoring committee, Mr. Rajkumar said in the letter, copies of which were also addressed to the Finance and MSME Ministries of the Central Government, the Reserve Bank of India, and the State Industries Ministry.
