The ReSTART financial package announced by the State Government for MSMEs would breathe a new lease of life into industries that were on the deathbed, Vizagapatam Chamber of Commerce and Industry president G. Veeramohan said on Wednesday.
Appreciating Chief Minister Y.S. Jagan Mohan Reddy’s gesture, Mr. Veeramohan said that it was not an easy thing to release over ₹1,200 crore at a time when the State was facing a severe financial crisis.
Mr. Veeramohan requested the government to release incentives kept pending by the previous government for many years, waiver of fixed/demand charges of power for three months and deferment for large industries, working capital with lowest interest rate, purchase of 25% of products by government entities with a stipulation to pay within 45 days, which will boost liquidity and help in quick recovery.
He pointed out that the plants are back on track and MSMEs have already started reopening units.
Mr. Veeramohan said that the waiver of fixed demand charges of power was not extended to a minor section like retail, hotels and convention centres.
“During closure of business due to lockdown, these organisations were forced to pay fixed power charges. It is a big burden for these businesses. Lakhs of employees are working in these business houses and the owners of these businesses are paying salaries, rents and other overheads. If the fixed charges are not waived on these businesses, many will collapse and close shop,” he said.
He also urged the State Government to consider waiver of property tax, trade licence charges and profession tax for three months for all business houses.
