Coimbatore: SME’s are facing a liquidity problem due to the reduced demand and deferment of deliveries, as an impact of COVID-19.
Coimbatore:SME’s are facing a liquidity problem due to the reduced demand and deferment of deliveries, as an impact of COVID-19.
Expressing their trust that the Government is looking at a stimulus to protect small and medium manufacturing companies from the economic impact of COVID19, the Southern India Engineering Manufacturers Association (SIEMA) has putforth their requests to the Prime Minister to help SMEs.
Citing that SIEMA members involved pump set manufacturing in Coimbatore contribute for more than 55% of the total Rs 16,000 crore organized pump trade of the country, they noted that presently SME’s are facing a liquidity problem due to the reduced demand and deferment of deliveries, as an impact of COVID-19.
To help SME’s tide over this problem, SIEMA has made a memorandum of requests for the survival of SME’s and protection of workforce during this period.
1) Reduce repo rate by 150bps leading to a reduction in interest rates for existing and new loans.
2) Provide one-time, interest free, emergency loans for industries affected by COVID-19 economic downturn. Loans can be provided as percentage of working capital or based on invoices or purchase orders from industries affected by COVID19 or export customers.
3) Exempt ESI & PF collection from SME's for six months.
4) Employee Wage Assistance to be given to SME's.
5) Provide exemption for validity period of e-Way bill to overcome the transportation disruptions due to non-availability of vehicles and drivers.
6) Loan repayment deferral for SME’s for a period of six months.
7) Restructuring of loans with reduced interest rate for SME's with good credit history who have the capacity to payback loans.
8) Deferral of GST payment for SME's for three months.
9) SME pump manufacturers with good track record to be given GST refund for inverted tax structure without requirement to submit physical documents to help with liquidity.
10) Deferral of GST & IT fines and penalties for SME's for one year.
11) Accelerated depreciation for new investments to be provided to SME's with turnover less than Rs 10 crores.
In addition to these protective measures for the industry, they further requested for enhanced cash transfer programmes for farmers, and for poor consumers who have below poverty line (BPL) ration cards.
The SIEMA also expressed their appreciation to the efforts taken by the government to combat the global pandemic and assured their participation to fight the spread of COVID-19.
Disclaimer: This news is carried based on the press release issued by the organisation.
Expressing their trust that the Government is looking at a stimulus to protect small and medium manufacturing companies from the economic impact of COVID19, the Southern India Engineering Manufacturers Association (SIEMA) has putforth their requests to the Prime Minister to help SMEs.
Citing that SIEMA members involved pump set manufacturing in Coimbatore contribute for more than 55% of the total Rs 16,000 crore organized pump trade of the country, they noted that presently SME’s are facing a liquidity problem due to the reduced demand and deferment of deliveries, as an impact of COVID-19.
To help SME’s tide over this problem, SIEMA has made a memorandum of requests for the survival of SME’s and protection of workforce during this period.
1) Reduce repo rate by 150bps leading to a reduction in interest rates for existing and new loans.
2) Provide one-time, interest free, emergency loans for industries affected by COVID-19 economic downturn. Loans can be provided as percentage of working capital or based on invoices or purchase orders from industries affected by COVID19 or export customers.
3) Exempt ESI & PF collection from SME's for six months.
4) Employee Wage Assistance to be given to SME's.
5) Provide exemption for validity period of e-Way bill to overcome the transportation disruptions due to non-availability of vehicles and drivers.
6) Loan repayment deferral for SME’s for a period of six months.
7) Restructuring of loans with reduced interest rate for SME's with good credit history who have the capacity to payback loans.
8) Deferral of GST payment for SME's for three months.
9) SME pump manufacturers with good track record to be given GST refund for inverted tax structure without requirement to submit physical documents to help with liquidity.
10) Deferral of GST & IT fines and penalties for SME's for one year.
11) Accelerated depreciation for new investments to be provided to SME's with turnover less than Rs 10 crores.
In addition to these protective measures for the industry, they further requested for enhanced cash transfer programmes for farmers, and for poor consumers who have below poverty line (BPL) ration cards.
The SIEMA also expressed their appreciation to the efforts taken by the government to combat the global pandemic and assured their participation to fight the spread of COVID-19.
Disclaimer: This news is carried based on the press release issued by the organisation.