Karnataka MSMEs seek extension of moratorium till March 31, 2021

Bangalore, Sep 3 (KNN) Amid worsening pandemic situation, the Micro, Small and Medium Enterprises (MSMEs) have urged the government to extend the moratorium on repayment of loans till March 31st, 2021. 

''We are deeply worried about the state of MSMEs in the face of the apparently worsening pandemic situation and the steep economic decline as a consequence of this,'' said Karnataka Small Scale Industries Association (KASSIA) on Thursday.

KASSIA further said that the micro and small enterprises in the state and the country are faced with a severe and deepening crisis as a result of their inability to restart normal operations due to completely curtailed production, absence of labour, lack of orders and also difficulties in making payments due to cash flow problems.

The industry body also feared that a large number of SMEs may have to completely shut if the situation does not improve.

''In light of the seemingly worsening crisis facing the sector, we urge the central government to take immediate steps to extend the moratorium on repayment of loans till March, 31st 2021 and waive the interest accrued on repayment in the moratorium period, in the absence of any other hope of revival of the economy in the near future,'' said KASSIA.

''This is absolutely essential for the survival of the MSMEs in the country,'' it added.