Dimapur, October 26 (MExN): Taking note of the havoc caused by the COVID-19 pandemic, the Business Association of Nagas (BAN) on Tuesday highlighted the need for economic relief measures for local entrepreneurs.
In a statement issued by its President L Mongkum Jamir and General Secretary Yan Murry, BAN stated that the ‘new reality’ brought about by the pandemic has been compounded by the severe economic toll from the outbreak.
“Naga entrepreneurs - who are mostly first-generation businesspersons, were not ready for such an unprecedented event. Many businesses have closed, some are barely managing, and many are on the verge of closing. The employees attached to these businesses also stand to lose their jobs,” the Association stated.
Observing that the state government can no longer provide jobs to thousands of youths passing out from schools, colleges and training institutions every year, BAN opined that employment can only be created by existing and upcoming enterprises in the state. Adding that only business activities and industries can bring about strong economy which can usher a new era of prosperity for the Nagas, the BAN sought COVID-19 stimulus package for Naga entrepreneurs.
It also mentioned its earlier communications with the Chief Minister on the plight of Naga entrepreneurs, followed by the consultative meeting on September 8, 2021 called by the Commissioner and Secretary, Department of Industries and Commerce, followed by another meeting on September 22 at Nagaland Industrial Development Corporation (NIDC), Dimapur.
During these meetings BAN said it took up matters of importance of the business community like State Industrial Policy, streamlining of PMEGP loan scheme, illegal occupation of Industrial shed by CRPF at Dimapur, COVID-19 stimulus package for Naga entrepreneurs etc.
The Association further noted that the Central government has announced stimulus package “to the tune of lakhs of crores” since the pandemic started, most of which is in the form of government credit guarantees. While these guarantees are in the nature of promises that the government will provide a back-stop if creditors default on loans that they take from banks, BAN stated that in Nagaland, the ground reality is that entrepreneurs are struggling to get loans from banks in the first place.
“This problem is further aggravated by the non-implementation of SARFAESI act,” it added.
“In such a scenario, it becomes imperative that the state government introduces economic relief measures for affected local entrepreneurs,” it reasoned.
Suggesting measures that need immediate attention, the Association stated that it is open to more deliberation with the government to ‘fine-tune’ the suggested measures.
Among the suggestions, BAN sought waiver of electricity bill and rent in government property for 12 months to industrial consumers, shops, and offices. This can be linked to power subsidy of Nagaland Industrial Policy, it opined.
It also suggested an employment wage subsidy which can be linked to manpower subsidy of Nagaland Industrial Policy 2004 which has not been utilized for the last more than 12 years. A flat rate of 50% can be granted, it added.
The Association also suggested SGST reimbursement for 1 year linked to Industrial Policy 2004.
Further, it pitched for COVID-19 business loans between Rs 2 lakh to Rs 10 lakh COVID-19 which can be from NIDC or under NBFC Co-lending scheme.
6 months interest should be reimbursed by State government (Linked to Industrial Policy) and loan can be repayable in 36 months, it suggested.
BAN also suggested provision of assistance up to Rs 1 lakh under COVID-19 microfinance which it said, can be covered under the CM corpus fund.
Other suggestions included sustainable enterprise fund, COVID-19 restriction livelihood scheme, credit guarantee scheme etc.
It further suggested that government departments should follow e-Tendering process for all purchases and contracts giving 15% price preference and exemption of earnest money to local entrepreneurs as per the provision under Nagaland Industrial policy 2004.
