Gasping MSME Sector Needs Booster Govt Relief Package-COSIA

Desperate efforts & persuasion from Industrialists do not yield any positive results remarked COSIA Vidarbha Chapter Chairman Shri Mayank.Shukla.

Although industries even under Red Zone area out of Municipal Corporation limit are allowed to work but in the absence of effective supply chain, ( one can not be sure of getting raw material and move finished goods they manufacture, or get utility service) further workforce being facilitated to migrate to their hometown, the directives of starting Industries becomes futile, Shukla added.

It has been more than 40 days and we have entered into 3rd phase of LOCKDOWN period, the commercial cycle has come to a grinding halt, still, we do not see know, when there will be the dawn for Industrial sector. Daily we get new directives from Centre followed by state adding some rider and further made stringent by the local administration.

We agree COVID-19 is a PANDEMIC disease and saving lives is of utmost importance but then why only the Industrial and Commercial sector need to be burdened for all the requirements?  Shukla further lamented.

When it comes to payment of wages Employers are pressurised to make full payment for LOCKDOWN period, when it comes to Electricity Bills, Industrial Consumers are not given any relief even to the extent of waving off the Fixed charges, for this period, but they are being obliged to the extent of being given moratorium on these charges to the extent of said fixed charges.

The earlier package announced by Hon’ble Finance Minister, and RBI Governor, seems to be just an eyewash. The relief offered to improve the liquidity to Industries is yet to reach the customers of the bank. The Govt’s contribution towards PF for Employees and Employers in the unit having less than 100 employees, with a rider of more than  90% drawing salary/wages below 15000/- per month have deprived more than 80 % MSMEs taking its benefit, disappointed Shukla concluded.

CA Julfesh Shah, Vice Chairman COSIA, carrying further the woes of Industries and in particular MSME sector, said that industries have come to a grinding halt and absolutely there is no cashflow in their account, deferment of Term Loan EMIs with interest is not a relief, but the extension of the period added with its cost, which in some cases may be more than total EMI amount.

The Industrialists are eagerly waiting with a second set of relief package, promised by the Honourable Finance Minister and RBI Governor during their last address, Shah said MSME sector whose contribution to GDP, Exports, Job creation and Import substitute has a major role in Nation’s Economy cannot be ignored and therefore it needs to be supported, by whatever measures, may it be waged payment or easy access to funds liquidity, during the Lockdown period or providing workforce post Lockdown period.

If Nation has to come out of Economy collapse it has to come to the rescue of MSME sector, Shah summarised the whole issue. He further added that Government is arranging train to transfer labourers to their home states now. What will happen after locked down.? The industry will not get adequate labour for manufacturing activities. The industry will not come out from the lockdown era even after lockdown. Proper testing was not done of labourers at the place of dispatch.

All of them were quarantined in the village area. Some villages where more than 10K labourers were quarantined and the number of police staff in that village was too less. Labourers already might have frustrated during the lockdown. Can they follow the quarantine rule.? Who will bear their living hood expenses now?

If those villages were equipped with employment opportunities they might not have migrated to cities. Is this justice to the industrialists who maintained them for almost two months during the lockdown. And when they are expecting to open up the businesses in next 15 days, the labourers are being shifted at this juncture. They won’t come back again due to fear of Corona.

The only question that remains is that who will be benefited by such shifting, Shah questioned. Shah appealed that its high time that Govt must announce & implement the booster package for MSMEs on war footing basis.