MSMEs need govt support post lockdown to kickstart economy: Ashok Leyland CEO

New Delhi, Apr 18 (KNN) Micro, Small and Medium Enterprises (MSMEs) will need support from the government to kick-start the economy after lockdown is lifted, said Ashok Leyland Managing Director and CEO Vipin Sondhi.

MSME's are the backbone of Indian industry and form the key element of the product supply chain - be it Agri-processing, textiles, or auto-ancillaries," Sondhi said in a statement.

''They will need support from the government and measures to be considered would be: easy access to working capital and liquidity, through banks and NBFC's, providing interest free and collateral free loans; introduction of an incentive for MSME's to help them pay salaries and wages to their employees in these times" he added.

Sondhi also said the NPA recognition period must be extended for MSMEs from 90 days to 360 days and ensure that all pending payments to industry/MSME's are cleared immediately by the government departments and PSUs.

"It would be crucial to kick-start economic activity after this period of disruption.

Lastly, he said, "MSMEs can be incentivised to produce medical supplies, with a buy back arrangement from the government."