Coimbatore: CODISSIA has submitted its representation to the Prime Minister, Finance Minister, MSME Minister and their respective Secretaries, Government of India, New Delhi, regarding the Impact of Corona Virus-operations of MSME Industries during possible isolation period (lockdown of MSME Industries).
Coimbatore: CODISSIA has submitted its representation to the Prime Minister, Finance Minister, MSME Minister and their respective Secretaries, Government of India, New Delhi, regarding the Impact of Corona Virus-operations of MSME Industries during possible isolation period (lockdown of MSME Industries).
CODISSIA in a press release today said it supports the Janata Curfew being observed on March 22, 2020 between 7 AM and 9 PM. In the release the Chairman said, "Learning from the experiences of countries like China and Italy, we foresee there is also a possibility that our whole nation will have to be brought into isolation, the impact closing of MSME industries, possibly for a period of two to four weeks, to preempt the imminent threat faced by the country, in the wake of the spread of the coronavirus."
He also promised to adhere to the request by PM to not cut wages for employees during the lockdown. But added saying, "However, it is a well-known fact that MSME industries run their units based on the flow of funds on a daily / weekly basis. Hence, it must be noted that if the MSME units may have to shut down for 2 to 4 weeks due to the prevailing situation like this, they will neither be able to make any payment nor can collect any receivable funds, and hence no banking transactions can be done which would lead to non-payment of all statutory payments like ESI, PF, GST, Income Tax etc. for the said period."
He hence requested the Government to give them relief for the lockdown period by giving suitable instructions to banks not to charge interest on loan amounts and all other dues to the banks for the said period. Once the situation becomes normal and regular operations resume, the banking operations can also be continued.
Therefore, they appealed to the Government of India to consider and issue necessary instructions to the Reserve Bank of India, to consider closing down of all banking transactions for the lockdown period when industries may be closed. He added saying it will be very much supportive to the MSMEs by extending the NIL interest on all loans and cash credits until the end of the situation.
In the press release, the Chairman requested the following consideration by the government:
To help the MSME units to pay wages to its employees, by way of granting some subsidies to these MSME units for the lockdown period and give exemption on ESI and PF.
All statutory payments like GST, Income Tax etc. should be deferred for the next three months after the lockdown period.
Filing of all statutory returns in respect of ESI, PF, GST, Income Tax, Companies Act, LLP Compliances should be extended for the next three months after the lockdown period.
To extend the ad- hoc additional credit of 25% for working capital by all the financial institutes and public sector banks until the situation gets normalized.
To direct Government Departments as well as companies for the immediate release of pending receivables to MSMEs which will be helpful to meet out the working capital requirement.
Delivery schedules of orders in the process to be extended until the situation is normalized and LD penalty to be kept aside for the same period in PSUs.
All the pending orders should continue after the expiry period also and should be given extension without cancellation.
On account of the continuous closure during the lockdown period, in case the pandemic situation turns into stage III, the supply chain of MSME Industries will greatly be affected and since the MSME industries are in different verticals, some are dealing with perishable goods, certain B2B industries are also there.
Hence, during the lockdown period, they need all the support mentioned above to revive their operations after the lockdown period. Hence, a moratorium of six months holiday period should be provided for all MSMEs.
For employees during the stage III and closure period, provision of LAY OFF NORMS by the Government across the country will yield to a cordial relationship between employers and employees, for which MSMEs will support the above initiative.
CODISSIA assured that they shall cooperate with the Government of India in preventing the spread of the disastrous pandemic and shall be supportive of all initiatives of the Government. Chairman in his press release added that they have already circulated awareness flyers and posters to all their member industries and the MSMEs of this region.