New Delhi, May 9 (KNN) The current Corona Virus (COVID-19) led lockdown has substantially disrupted the operations of Micro, Small and Medium Enterprises (MSMEs).

To cope with such situation, Indian Industries Association (IIA) has written to central government seeking composite package for MSMEs under present circumstances due to COVID-19 pandemic.

The letter which is addressed to Prime Minister Narendra Modi, Finance Minister Nirmala Sitharaman, MSME Minister Nitin Gadkari and MSME Secretary AK Sharma, the association has said that a national Plan for MSME Sector for the devastating effect should be formulated.

''In terms of Section 10 of Management Disaster Act, 2005 a National Plan for MSME Sector for the devastating effect it has had should be formulated. Special attention needs to be drawn in terms of Section 12 and Section 13 of the Disaster Management Act, 2005,'' said IIA in the letter.

Under section 12 of the Disaster Management Act, 2005, the National Authority shall recommend guidelines for the minimum standards of relief to be provided to persons affected by disaster. While on the other hand under section 13 of the same act, the National Authority may, in cases of disasters of severe magnitude, recommend relief in repayment of loans or for grant of fresh loans to the persons affected by disaster on such concessional terms as may be appropriate.

Apart from these, IIA also proposed to the following which need to be looked in such as Banking where all loans (Term loans, WCTL and Debit/Credit Cards) should carry a Interest Rate of not more than 6.5%. No Interest should be charged upto 31st March, 2021, The Moratorium of EMI should be extended upto 31st March 2021 and No Processing charges should be levied for renewal of Loans/Limits upto 31st March, 2022 etc.

In terms of Recoveries as in the case of IBC all insolvency proceedings are proposed to be kept in abeyance for 1 year and Banks are proposing to the government to keep IBC proceedings in all pending cases to be suspended for 2 years.

''It is therefore submitted that all pending proceedings under SARFAESI Act 2002, DRT Act 1993 or any other recovery including auctions should be suspended for 2 years,'' IIA said.

The IIA further recommended that salary and wages during the lock down period should be paid from ESI and those not covered under ESI but registered with State Industries Department DBT should be done after seeking their details.

''No Interest or Penalty/Extra charge for delayed payment upto 31st March, 2022. Flexibility in payment of GST of any month (3 B) and all cancelled GST Registration to be restored immediately without payment of Interest or Penalty or any charges,'' IIA suggested.

Industry body also demanded that the last date of filing returns of March 31 st to be extended to 30th September, 2020 and that of 31st July 2020 to December 2020. No Interest or Penalty for late filing of returns up to 31st March, 2022

In terms of Late payment, IIA said, ''all late payments made by government departments, corporations and private parties to pay interest automatically as per the MSME Act, 2006. Person responsible for intentionally delaying the payment be made personally liable to pay penalty of 25% of the amount due remaining unpaid.''

''Hassle free movement of goods (Raw Material and Finished Goods) at the Borders and within the state should be ensured. Persons found delaying the transportation or holding back the transportation, which is accompanied by valid documents be liable for 3 months imprisonment and personal penalty of 5% of the Invoice value of goods being transported,'' IIA suggested.

The other proposed suggestions are Force Majeure, Medical Policy, Sanitation and exports.

''Nirvik scheme announced by Finance Minister during Budget speech for exporters should be immediately implemented. Post Covid-19 and during its onslaught the exports have become highly risky. As such the remittance should be covered through ECGC. The premium at present being very high should be borne by Government for all MSME exporters,'' IIA avowed.