Centre and State should gear up to save the suffocating MSME sector - MK Stalin
Coimbatore: DMK leader MK Stalin said in a statement has stressed that the central and state governments should immediately review the demands putforth by the representatives of the MSMEs to help them recover from the “curfew” and provide employment to the workers.
MK Stalin, President of DMK in an official statement said the Micro, Small and Medium Enterprises (SMEs) are the backbone of Tamil Nadu's economic growth and the main hubs of employment creation. He said, the corporations across Tamil Nadu, including Tirupur, Coimbatore and Chennai, are already undergoing severe loss due to demonetisation and GST. And, are now in a state of disarray due to a curfew issued to curb coronavirus spread.
He said, "In this context, today (4.5.2020), I have discussed with the leaders of the unions and representatives of these state-owned enterprises by a video conference and discussed the possibilities of coping with this crisis."
The DMK leader said the comments, suggestions and requests by each of the representatives on behalf of these companies have made it possible for this sector to provide employment and livelihood to more than 20 lakh people directly and indirectly.
He presented the following requests to the central and state governments for the well-being of the MSMEs:
- In order to restart the business and pay the workers, these companies must increase their working capital and cash limit by 25 per cent hence should be offered loans at lower interest rates.
- As announced in Kerala, 1 to 2 per cent of GDP should be declared as a relief grant to these companies.
- Although the Reserve Bank has ordered the repayment of the monthly loan instalments after three months, the private banks insist that the interest be paid monthly. Therefore, the RBI must strictly comply with the directive, postpone the loan repayment for 6 months and relax the NPA criteria.
- Employees of these companies should issue permits to the workers to work with the respective VAO or Local Authorities.
- Payment of electricity, water charges, and bills to the state should be given a time period of six months; Deposits for these services should also be reduced.
- Postponing the six-month freight and service tax collection - allowing that balance to be paid in monthly instalments over two years.
- To revive the industry, 10% of the goods and services tax paid last year must be returned to their respective companies.
- Increasing interest period for “Seasonal Loan” up to Rs. 10 Lakhs.
- After the curfew, these companies have must be offered 30 per cent subsidized loans to start their business. The interest charge should be postponed for 6 months.
- The central government must provide 50 per cent of the workers 'salaries through Workers' Insurance (ESI).
The DMK President and Opposition leader, MK Stalin has asked the central and state governments to consider the plight and pleas of the MSMEs and assist them to revive after the lockdown. He also strongly insisted the governments to protect the welfare of the workers through strict preventive measures of coronavirus.