MSMEs seek bailout to recover from COVID-19 crisis

March 31, 2020 10:07 pm | Updated 10:07 pm IST - Kozhikode

The micro, small and medium enterprises (MSMEs) in the State have sought urgent steps from the government to address their concerns in the wake of the COVID-19 crisis.

In a letter to the Chief Minister, the Kerala State Small Industries Association (KSSIA) has sought allocation of at least ₹2,000 crore from the ₹20,000-crore financial package announced by the government to tackle the crisis.

Functionaries of some other industrial units, meanwhile, requested the authorities to permit them to clean and maintain machines and equipment on their premises during the lockdown.

A. Vijayaraj, general secretary of the Sign Printing Association, claimed the units’ costly equipment would be destroyed if they werenot cleaned regularly. He urged the Chief Minister as well as the State Police Chief to give permission for the purpose once in two days.

KSSIA president M. Khalid and general secretary A. Nizarudeen sought a one-year moratorium on repayment of term loans taken from banks and other financial institutions. These institutions may also be asked to provide additional working capital if there is a need, without collateral security.

The government should refund the excess input credit under the Goods and Services Tax (GST). There should not be any penalty or penal interest on delay in payment of power bills, provident fund and Employees’ State Insurance contribution and GST. The Kerala State Electricity Board should waive all fixed charges for the next three months and allow consumers to pay the bill for March in three equal installments.

Mr. Khalid and Mr. Nizarudeen pointed out that migrant labourers, who formed the backbone of MSMEs, should be persuaded to stay back in the State. There should be a moratorium on inspections for six months. The government and semi-government institutions need to release all payments due to MSMEs for products supplied and services rendered. Units producing hand sanitisers were finding it difficult to get spirit and the government should make it available, they added.

0 / 0
Sign in to unlock member-only benefits!
  • Access 10 free stories every month
  • Save stories to read later
  • Access to comment on every story
  • Sign-up/manage your newsletter subscriptions with a single click
  • Get notified by email for early access to discounts & offers on our products
Sign in

Comments

Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.

We have migrated to a new commenting platform. If you are already a registered user of The Hindu and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.