Dimapur, May 5 (MExN): Union Minister for Micro, Small and Medium Enterprises and Road Transport and Highways, Nitin Jairam Gadkari, has assured Dr Ambedkar Chamber of Commerce (DACC) of adequate financial and other infrastructural support from the proposed Government relief fund to tide over the current economic crisis as a fallout of the corona pandemic, something the latter is quite upbeat about.
The assurance to this effect came during an online meeting with the DACC where the organization apprised him of the crisis the SCs and STs entrepreneurs are facing at this time and also presented him a memorandum of demands to highlight their various issues.
According to a press release from the PIB, the points of discussion revolved around how to jump start MSME economy, need for new innovations and technologies to combat COVID-19, integrated support in inventory clearance in manufacturing sector, MSME funds and financial matters besides central/state schemes/ procurement policy of MSME/ CSR funds among others.
On the specific demands of the North Eastern region, the DACC observed that the sector is “too small to sustain such a long period of crisis and so may suffer even more.” As such, it recommended that the Government come out with a concrete and quick action plan which may include tax concessions, easy access to credit, GST write-offs and reimbursement or concession for wage guarantee, to name a few.
DACC suggested, among other things, a slew of measures including more tax breaks and softer term loans, increased protectionism to help keep cheap imports at bay till such time manufacturers find their feet, allowing payment of GST arrears in instalments along with current due, with 6-month suspension without cancelling GST registration, full implementation of state industrial and investment policies in simplified norm besides developing more number of micro enterprise cluster based on local resources.
DACC asked for strong support of Financial Institutions/Banks for providing loans to viable and feasible micro and small enterprise units as also relaxing bad loan norms which could also prove to be a saving move for the sector.
The DACC also raised several demands regarding quantum of relief and assistance to MSMEs owned by SCs and STs entrepreneurs affected by the ongoing crisis. It has demanded that out of the Rs 1 lakh crore revival package announced for the MSMEs affected by the pandemic and subsequent lockdown, 25 per cent should be exclusively allotted to SC/ST MSMEs and the Government must bear at least 50 per cent of wages of employees for the lockdown period.
The DACC, in its memorandum, demanded waiving off of all bank and electricity charges besides EMIs of all business loans of these SC/ST owned units and also urged The Government to issue directives to banks and financial institutions for reducing rate of interest on loans procured by industry as they were fixed while the situation was normal.
Meanwhile, Gadkari said all possible measures will be taken to help the budding entrepreneurs.
He also appreciated the initiative taken by the DACC in this regard and suggested that once the current situation due to the pandemic improved in the country, there could be a meeting between the Ministry officials and DACC’s representatives to sort out all their pending issues in a systematic and positive way.
