Financial crisis in MSME due to present lockdown: CICU
Writes to PM, FM and Minister for MSMEs
cityairnews
May 17, 2021 04:40
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Ludhiana: Upkar Singh Ahuja, President, Pankaj Sharma, General Secretary, J.S Bhogal, Publicity Secretary and Honey Sethi, Organizing Secretary, Chamber of Industrial and Commercial Undertakings (CICU) in a joint statement said that MSME sector is not doing well since last 3 years and present lockdown due to Covid-19 has badly affected the MSME. Large manufacturing plant are closed due to Covid-19 and MSME sector is going through liquidity crunch, as no sale is made.
They said CICU has written to Narendra Modi, Prime Minister, Nirmala Sitharaman, Finance Minister and Nitin Gadkari, Minister of Micro, Small and Medium Enterprises making them the following requests:
• One year Moratorium on loan repayment of MSME.
• Additional limit of 20% for all MSME sector.
• Repayment of ESI, PF and other taxes to be deferred for three months.
• GST, Income Tax deferment till sales return to normal or 80%.
• Payment made to labour during lockdown to be reimbursed to MSME.
• Capital goods industries like machine tool need support on capital goods.
• Repayment of existing working capital loans to be extended for 2 years as there was low production during FY 2021 and projected in 2022.
• Micro sector units with investment up-to 1 Crore need to be given special attention and pre-approved loan up-to 50% of turnover to be given.
• GST deposit to be deferred for two quarters.
• Employees covered under ESI to be paid some of amount directly in their accounts calculation to be done as per last one year ESI contribution.
