FISME Urges Haryana Govt To Invoke Force Majeure, Faster Payment For MSMEs To Help Industry Tide Over West Asia Crisis

New Delhi, May 23 (KNN) Facing triple whammy of rising input costs, demand slowdown and trade disruptions in the wake of West Asia conflict, industry body Federation of Indian Micro and Small & Medium Enterprises (FISME) has urged the Haryana government to invoke force majeure clause in contracts to allow suppliers more time to fulfil their obligations.

In an emergency meeting held on the West Asia and Middle East crisis by Haryana chief minister Nayab Singh Saini, FISME President Rakesh Chhabra also called for mandatory compliance of the 30-day payment rule for state procurements.

The leading MSME industry body appealed to the Haryana government to issue a circular asking all corporates to register on TReDS platform, thus enabling MSMEs faster access to working capital.

“We also suggested to constitute a high-level committee to explore how we can be self-sufficient in our energy needs assuming the scenario that oil is no longer available," Mr Chhabra said.

Among other key suggestions, the FISME President proposed to set up a multi-department support cell to provide timely relief to the crisis-hit MSME sector.

The support cell could comprise of senior officials from Industries Department, Haryana State Industrial and Infrastructure Development Corporation (HSIIDC), Transport Department, DISCOMs, banks and industry associations.

The support cell may have weekly meetings online to discuss pressing issues such as raw material shortage, freight cost surge, payment delays and inventory position of MSMEs engaged in various sectors.

During the meeting with Haryana CM, the FISME president also raised concerns around severe cost pressure being faced by auto ancillary manufacturers and reiterated the demand for equitable sharing of input cost burden with original equipment manufacturers (OEMs).

In a letter to Society of Indian Automobile Manufacturers (SIAM), FISME Secretary General Anil Bhardwaj had earlier suggested the auto industry body to temporarily adopt a mechanism to share the exceptional rise in cost stemming from high raw materials prices and wages.

With West Asia crisis prolonging, FISME has requested the Haryana government to temporarily rationalise industrial fixed charges, fast-track open access, promote cluster-based solar and captive energy solutions, and support energy audits for MSMEs to reduce cost pressures.

For regular review of the ongoing situation, FISME President Rakesh Chhabra during the meeting with Haryana CM suggested to depute senior officials to hold consultations with industry associations. These officials could review the situation with sectoral industry associations such as those representing engineering goods in Faridabad, auto and electronics manufacturers in Gurugram, textile players in Panipat, auto and food processing industries in Sonipat, and wood and engineering businesses in Yamunanagar.

(KNN Bureau)