CII sets up a relief fund to help MSMEs amid COVID-19 outbreak

Mumbai, Mar 27 (KNN) In a bid to assist rehabilitation of Micro, Small and Medium Enterprises (MSMEs), the Confederation of Indian Industry (CII) is setting up a relief fund, amid coronavirus pandemic, which has affected economy across the globe.

The body in a statement said, ''the Confederation will request all its members to contribute an amount from their CSR allocation for the fund, CII COVID Rehabilitation and Relief Fund (CRR).''

CII has also requested for additional ad-hoc sanction of working capital to the tune of 25 per cent of sanctioned limit as relief measure.

The body further sought setting up of a special MSME Factoring Fund to enable MSMEs to discount their bills to approved retailers in 15 days and permit retailers to pay in 120 days would help in faster realisation adding that ''measures for improving welfare of the MSME workers during the temporary shutdown period are also required.''

"Multiple actions need to be taken on extension of bank loans, a special fund, steps regarding filing of GST and improving welfare of workers. CII stands ready to support MSME sector in this hour of need through the CII CRR," said Shreekant Somany, Chairman, CII National Council on MSME.

The Confederation has proposed that the government should draw up contingency plans for three periods – till March 31; for next two months till May 31 and then for next 2 months till July 31.