Due to lockdown industry can't pay wages and salary of April to workers sitting at home: FICO

Ludhiana: Industry’s struggle to survive from past couple of years is not a hidden secret anymore, falling GDP of the country signifies the condition of the industry especially the MSME Sector, said FICO president Gurmeet Singh Kular alongwith organizing secretary Ashpreet Singh Sahni.

In a statement here today, they added unfortunately, the menace of deadly covid-19, hits our country and the whole country is under lockdown since 22nd March 2020, which means that the factories are closed, not only the production is zero but the flow of finances is also zero, no cashflow is being carried out throughout the country. Things are so bad that the goods which were dispatched before 22nd March are stuck up somewhere in the transit, as all the dealers and traders are shut down.
Further, they said this is a very critical position for the industry, and the industry is not in the position to pay the salary and wages for the Month of April to the labour sitting at home. They requested the Centre and the Punjab Government to intervene and share 50% of the salaries and wages each to help the industry by paying the salaries and wages for the Month of April and for the lockdown period.
“FICO also demanded total interest waiver to the industry from 23 March 2020 till the lockdown is over”, they asserted.
They also demanded that Credit Link Capital Subsidy Scheme was introduced to facilitate technology up-gradation in MSMEs by providing an upfront capital subsidy of 15 percent (on institutional finance of up to Rs.1 crore availed by them) for induction of well-established and improved technology. Post lock down the Government should enhance CLCSS Subsidy limit from 15% to 50% and the financial benefits should be increased from 1 crore to 25 crore, so that industry can be benefitted on terms more your invest more you gain terms and set up new projects as now world is looking at India as next manufacturing hub after China. “We should encash this opportunity”, they said, adding, “Also, the banks should be instructed to facilitate the industry with the CLCSS Scheme.”