KCCI seeks solutions to tackle Covid-induced problems of MSMEs – The Hindu BusinessLine

Clipped from: https://www.thehindubusinessline.com/economy/policy/kcci-seeks-solutions-to-tackle-covid-induced-problems-of-msmes/article34665139.ece

Demands measures including relaxation of NPA norms for loans availed, waiver of fixed charges of Escoms

With the second wave of Covid pandemic affecting towns and villages alike, the Kanara Chamber of Commerce and Industry (KCCI) has urged the Central Government to come out with innovative solutions to tackle the problems of MSMEs (micro, small and medium enterprises).

Also read: Kanara Chamber seeks support for MSME sector

Terming this as the time of crisis for everyone, he said the RBI and the Finance Ministry should come out with innovative solutions.

He said that the second wave of the Covid pandemic has enveloped the tier 2,3 towns and villages. While Covid has created unexpected health challenges, the inevitable lockdown affects the economy considerably, impacting its contributors. MSMEs, urban middle and lower middle class engaged in self-employment, small businesses or non-government jobs, and the scattered service sector have taken a considerable beating, he said.

The ‘Aatmanirbhar Bharat’ package, which was announced during the first wave of Covid, has not been announced for the second wave, he said. As a result, the lower middle class, urban poor and even the rural poor are slowly bleeding and losing power to face the crisis.

Urgent remedial actions

He said there is a requirement of urgent remedial actions from Central and State governments in several areas to help save the economy.

In this regard, the Government should announce concessions for loan instalments and interest servicing commitments, and postpone payment of EMI of all loans of MSMEs without any compounding interest, he said.

Making a pitch for the relaxation of NPA norms for loan availed, Vas suggested the applicability of declaration of default under Insolvency laws be suspended.

Seeking the waiver of fixed charges of Escoms (electricity supply companies) for MSMEs, he said the electricity and utility rates should be waived for the next three-six months and interest on arrears should also be waived.

KCCI also suggested the need to increase the validity of various approvals for a further two years without any additional fees or compliance.

He urged the government to grant extension of due dates for filing tax returns under GST laws, and sought an extension for TDS compliances. Urging the need to halt the increase in property tax, vehicle tax, income tax, and GST rates, he said the Government should consider reducing rates for one-two years.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s