Empowering MSMEs with News & Insights

KASSIA writes to PM Modi seeking more relief measures for MSEs during lockdown

Updated: Apr 01, 2020 08:52:03am
image

KASSIA writes to PM Modi seeking more relief measures for MSEs during lockdown

Bangalore, Apr 1 (KNN) Karnataka Small Scale Industries Association (KASSIA) has sought more measures to help Small and Medium Enterprises (SMEs) to survive this calamity due to Coronavirus pandemic.

In a letter to Prime Minister Narendra Modi, accessed by KNN India, KASSIA President R Raju said, ''We commend the various measures already announced by the government to sustain the SMEs in these extremely hard times following the Covid-19 outbreak. While the lockdown to contain the spread of the virus is inevitable, we are truly concerned with what may lie ahead after the prolonged shutdown, hoping that it is not further extended.''

The SMEs are under severe stress and will find it very difficult to be back on their feet as a consequence of this crisis, stoppage of production and workers disruption, said Raju.

''The challenge for SMEs in the days ahead will be picking themselves up to start all over again. We believe the support of government in this will be pivotal,'' he added.

KASSIA president in its letter, also inform the Prime Minister that it has received number of representations from its members, urging them to request the government to relax the payment of GST for the months of March, April and May, 2020, by giving an extension of three more months for making payments without interest and penalty.

The suggested measures of the KASSIA to Prime Minister are as follow:

01. Funding support to SMEs for three months from the date of normalcy to ensure they maintain the levels of workforce and production.

02. Please extend payment of PF and ESI contributions by govt. until September to all the SMEs. Also, remove the wage ceiling of Rs.15000 & employee cap of 100 now stipulated for payment of such contributions.

03. The government may kindly consider payment of ESI contribution of both employers and employees for the next six months. Besides, under ABVKY scheme of ESIC the govt. may compensate employers to enable them to pay workers for the next 6 months. ESIC apparently had substantial reserves which may be used to meet the crisis.

04. Kindly waive payment of interest on loans for 3 months or Subsidize interest of SME borrowers on their working capital loans to stay on track.

05. For the next 3 months we request 50 per cent of worker's salaries be compensated by Government.

06. Ease routine regulatory compliance norms for SMEs.

07. Advise States to waive payment of fixed charges on electricity and water supply for 6 months.

08. Fund/Exempt school/college fees of workers children for a year.

09. Enforcement of minimum wage for Labours should be relaxed for one year.

10. More importantly, please ensure that industry maintains the essential minimum operations during the shutdown specially if the lock down prolongs.

COMMENTS

    Be first to give your comments.

LEAVE A REPLY

Required fields are marked *