MSMEs write to PM Modi; seeks help for them amid COVID second wave
Bengaluru, May 1 (KNN) As the COVID second wave has again crippled MSME functioning, Karnataka Small Scale Industries Association (KASSIA) has requested the Central government to announce package reliefs to latter.
The Karnataka based industry body, has written to the Prime Minister Narendra Modi, apprising him of the present scenario of MSMEs, who have been particularly affected by the outbreak of COVID second wave.
''As your kind self is aware, the worldwide spread of Corona virus and its impact currently on India has completely thrown industry out of gear. The SMEs have been particularly affected by the outbreak due to their vulnerability to such shocks by their very nature.
The overall economic downturn has been compounded by the pandemic disrupting the markets and the supply chains. The SMEs in particular are affected due to this in terms of sales and cash flow problems, labour absenteeism and are not in a position to meet the various commitments and compliances required of them,'' KASSIA said in the letter to PM Modi.
To reduce the burden on MSMEs, they urged centre to to permit them to pay GST once in 3 months, relax stipulations on statutory payments like PF & ESI contributions may be suitably relaxed by extending time for such payments to SMEs, Relax NPA norms on SMEs, maintain financial flows to SMEs to meet working capital and other needs in the prevailing circumstances and speed up the payments due to them by the PSUs and other state.
The industry body also urged the Prime Minister to advise the banks in particular to address the issues with the required understanding and sympathy and Relax income tax payments this place a burden on the entrepreneur at a time when demand has slumped and operations disrupted.
''It would be essential that these measures are implemented with the intervention at your level, so that the institutions/ Departments concerned take the required steps to address this serious problem,'' it said.