Industry body FTCCI seeks support for MSMEs
Moratorium should be extended up to March 2022 on all EMIs of term loans as well as interest on cash credit accounts.
Hyderabad: Industrial sector has been hit due to partial or full lockdowns imposed in several States due to Covid-19. The MSMEs are passing through a tough phase and immediate support is needed for their survival, said industry body Federation of Telangana Chambers of Commerce (FTCCI).
FTCCI and other industry members deliberated on the problems confronting MSMEs. They submitted representation to the Finance Minister and also to the RBI Governor.
“We requested for a new scheme on the lines of the Emergency Credit Line under Guarantee Scheme. The old scheme may be merged with the new scheme to support the industry since repayment and gestation period are more. Banks need to be flexible in declaring assets as NPA. There is a need for revisiting the criteria for NPA classification. Many micro and small manufacturing firms are not able to realize their dues as per the agreed terms. This is resulting in shortage of working funds and needs immediate attention,” said Ramakanth Inani, FTCCI President.
MSMEs sector is seeking a reduction in rate of interest. Banks should also provide need-based working capital based on their cash flows rather than on conventional turnover base assessment. Liquidity should be infused in the financial system, he said.
Moratorium should be extended up to March 2022 on all EMIs of term loans as well as interest on cash credit accounts. All measures must be made applicable to the NBFCs, he said.
FTCCI also requested fiscal incentives, allowing input credit without restrictions, input credit on capital goods on purchase and reduction in GST rates to boost demand. It also asked for a wage subsistence system and social security measures like PF without limitation and relief from payment of minimum electricity charges.
With the functioning of the units disrupted owing to suffering of the workforce due to Covid and workforce migration, it has become difficult for the companies and industries to ensure filing of returns and statutory compliances.
FTCCI Senior Vice President K Bhasker Reddy and Vice President Anil Agarwal and other entrepreneurs participated in the meeting.
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