IIA submits suggestions to Finance, MSME, Labour, Commerce & Industry Ministry; seeks more relief for MSMEs
New Delhi, Mar 30 (KNN) Indian Industries Association (IIA), an apex body of Micro, Small and Medium Enterprises (MSMEs) has submitted its suggestions to various central government ministries seeking more relief for MSMEs.
''In view of countrywide Lockdown and complete shutdown of Industries from March 25th, MSME's will be subjected to irreparable loss, if not supported by the Central and State Governments,'' said IIA President Pankaj Kumar.
He further said that affected MSME 's will be unable to carry on with the production activities leading to zero capacity utilization and also no Electric power utilization, yet, all MSMEs will be required to pay Demand / fixed charges / minimum charges, pay the Wages to all the workers and employees during the period of lockdowns, make payment of bank loan & interests and meet all other fixed costs.
''In case of prolonged shutdown and without support from the Government, these MSME's may find very difficult to recover from the shock,'' he added.
The suggestions submitted to various Ministry are as follows:
In the suggestions submitted to Union Finance Minister Nirmala Sitharaman, IIA sought:
(1) MSME's the Bank EMI's and interest on TL and CC be deferred for at least six months or more subject to the impact of Covid19
(2) MSME's should be allowed additional working capital up to 30 per cent for six months without any additional charges. However, in the case of CGTMSE loans it should be up to 50 per cent
(3) Considering the unprecedented impact of the pandemic, no enterprise that cannot be called a habitual offender, be declared NPA, post Covid-19 circumstances
(4) RBI should issue mandatory instructions to do away with credit rating for next six months, so that MSME's can get finances on lower interest rates
(5) TDS for payment of salaries and services should be suspended for six months
(6) GST refunds to be further expedited and documentation requirements to be reduced
(7) GST Registration cancelation done earlier should be given time for restoration up to 30th September 2020 without any interest / late charges / penalties
(8) The government should also give instructions to tax officers to put a temporary hold on the fixation of personal hearing
(9) The Government should issue instructions to the adjudicating / appealed authorities to not to pass any order ex party
(10) PCFC (packing credit in foreign currency) loan against export order is being taken by the exporters with the agreement with the bank to handover the documents with b/l within committed period but due to lock down industries are closed and shipments are held up. So, exporters are not in a position to handover the documents to the bank within committed period. Under such circumstance's banks should be instructed not to pressurize the exporters in case they are not able to handover the documents within the time period.
Suggestions submitted to Union Labour Minister Mr Santosh Kumar Gangwar :-
(1) Provide a waiver for all PF, ESI and Gratuity payments by employer for six months if the employer does not retrench or remove more than 10% of its workforce
(2) The departments should not issue notices for time bound compliances
(3) The payment to workers for man days lost due to lockdown or Covid-19 illness should be paid or born by ESIC for those workers who are registered with ESIC. It is after all a medical emergency and ESIC is having surplus of Rs 10000 Crore which is contributed by the workers and their employees only. There cannot be a better utilization of this surplus as it is required in today's situation. For other workers in MSME's not registered in ESIC, Government may provide sustenance allowance + ration as has been done by Uttar Pradesh government for construction industry workers. OR at least the employers be allowed to pay maximum Rs 1000/- per month instead of full salary and Government may provide ration free of cost to these workers, (4) Industry may be allowed to adjust medical leaves & earned leaves for paid holidays to Covid-19 affected employees.
Suggestions submitted to Union Minister MSME Nitin Gadkari and Union Minister Commerce and Industry Piyush Goyal:
(1) Government Departments, Government Undertakings and Big Industries should be directed to make payments for supplies made by MSEs to them immediately and in no case the delay in payments should be for more than 45 days as stipulated in the MSMED Act
(2) Invocation of Force Majeure Clause for all contractual obligations and no penalties be imposed by State and Central Government agencies for delayed deliveries or completion of the projects. The period of completion of the projects under any MOU signed between the Entrepreneur and State / Central Government undertaking / department be extended by minimum 3 months or further subject to the impact of Covid19
(3) Advise all power discoms across the country to waiver / exempt Fixed Charges / Demand Charges / Minimum Charges from their MSME power consumers for the period of Lockdown.