Several investors in the city opine that the sops announced by the Reserve Bank of India (RBI) will provide the booster dose to them in overcoming the challenging situation thrown up by COVID-19 and the lockdown now observed to contain its spread.
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The investors, by and large, say that the announcements made by the RBI and the ₹1.7 lakh crore- package unveiled by the the Union Finance Minister to address the livelihood issues posed by the lockdown will help stabilise the market.
‘Waive power bills, taxes’
Visakha Autonagar Small-Scale Industries’ Welfare Association president A.K. Balaji said that once the industries were opened after lockdown, huge cash would be required to restart. While welcoming the sops announced, he said, to bridge the gap, working capital should be provided by the banks liberally at low interest rates, and, if possible, with out interest.
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Power bills and municipal taxes should be waived for a period of three months on the lines of the moratorium announced for the borrowers on payment of EMIs.
Sravan Shipping Services managing director G. Sambasiva Rao said the slew of measures initiated by the RBI such as special lines of liquidity, loan moratorium for three months on working capital and term loans and easier asset quality norms to help the economy tide over the crisis were highly laudable.
The measures would offer some protection against widespread defaults.
“It’s a temporary relief in effect. Banks can allow all customers to not pay their monthly EMIs for a three-month period, and the non-repayment will not hurt their credit score. At the same time, rating of the organisation will remain intact. We need the economy to blossom. It is the only way we can go ahead,” he said.
Symbiosys Technologies CEO O. Naresh Kumar appreciated the steps taken by the Centre to fight COVID-19 and sought more sops for the MSMEs and IT and ITES firms - a major employment provider - to absorb losses suffered by them during the lockdown period.