Bengaluru, Apr 14 (KNN) The Karnataka Small Scale Industries Association (KASSIA) has welcomed  the  announcement  by  Prime  Minister Narendra Modi  to  extend  the  lockdown till May 3, 2020 in the face of the worrying spikes of the pandemic.

“There is no gain saying the fact this is necessary to deal with the crisis as the just concluding 21 day lockdown seems to indicate,” KASSIA said.

Meanwhile, KASSIA pointed that the micro, small and medium enterprises (MSMEs) which are facing an existential crisis need immediate support and further reliefs from the governments, both central and state.

The industry body requested the government to initiate some measures on top of what has already been done.

KASSIA suggested that the government should provide payroll subsidy of minimum 50% for 6 months for SMEs and it should also take care of ESI/ PF payments for 6 months by the government.

“Ensure fixed charges on electricity bills are waived and also electricity tax/interest in addition to effecting tariff reduction as done in some states. This is for the state government to do,” KASSIA said.

Interest must not be charged on delayed payment and there should also be no power disconnection for non-payment, demanded the industry body.

Moratorium on all payments by SMEs should be extended for 6 months and all  banking  norms  pertaining  to  MSMEs  should  be  eased  and  all  beneficial  schemes  must be properly implemented, said KASSIA.

As MSMEs are struggling pay wage to their workers, KASSIA demanded that wage increases must also be held down for a period to ensure survival and retention of jobs.

“As already mooted in many cases compliance must be relaxed. Last but not least, government must ensure that interest rates are adequately subsidized to ensure that SMEs get finance at 4% for the year so as to be back on track,” KASSIA said.

The industry body raised serious concerns about  the  circular  issued  by  the  labour  department  directing industries  to  pay  full  salary  and said  this  may  be  infeasible  unless  the  government  comes  out  with payroll support.

“We also urge the government to examine ways of allowing some industries to work with minimum staff as this is essential  in  the  circumstances  to  ensure  minimal  operations  for  them  to  sustain  in  the  long run,” said KASSIA. (KNN Bureau)