Lockdown extension welcome: FIEO president

Reacting to the announcement made by the Prime Minister today regarding the extension of the lockdown till 3rd May and the adoption of a 7-point charter by each citizen, the FIEO president Mr Sharad Kumar Saraf said that these steps are extremely important to fight Covid-19. Additionally, he complimented the Prime Minister for leading the country’s fight against Coronavirus from the front, like a true statesman.
 
However, President FIEO expressed his disappointment with the deferment of the decision to extend the selective opening of the manufacturing sector, particularly regarding exports. Non-adherence to the delivery schedule for exports will result in cancellation, penalties and market loss, besides the business loss to enterprises. The exporters, particularly MSME exporters, have no liquidity to pay wages for the month of April as they are unable to conduct any business activity during the lockdown. He also said that the shifting of the goalpost will not help in avoiding the stark realities which we have to face whenever we open. The start of selective manufacturing will also be a long drawn battle due to the unavailability of labour, raw material, transport etc. which will resume normalcy only after a few months of selective opening. Even countries such as Spain, one of the worst affected nations, have started opening the economy to bring it on track.

President FIEO demanded that a comprehensive economic package may be announced to help the economy, with interest free credit to cover six months of wages, rental and utilities along with a moratorium to repay in installments after six months. Without such support, the government should not expect the industry to pay wages during the lockdown and any coercive action to bring about the same will only be counterproductive.
 
Mr Saraf said that he salutes the export community, which despite such loss and bleak future, is providing groceries, masks and medical help to the community, particularly the poor sections, as urged by the Prime Minister.

Meanwhile, Mr. Subhrakant Panda, Managing Director, Indian Metals and Ferro Alloys (IMFA) said, “The extension of the lockdown until May 3rd was necessary as we are at a critical stage of the battle to contain the Covid-19 outbreak. Prime Minister’s focus is rightly on saving lives while allowing a gradual resumption of economic activity; I look forward to the detailed guidelines which will be issued tomorrow. Finally, more follow up measures to address human and corporate stress is imperative. While the focus should undoubtedly be on those at the bottom of the pyramid, no one is immune to the economic impact of the measures required to stop the virus.” It may be mentioned here that recently, Mr. Subhrakant Panda was also appointed Chairman of the National Manufacturing Committee of the Federation of Indian Chambers of Commerce and Industry (FICCI).

Mr. Kaushal Agarwal, Chairman, Director, The Guardians Real Estate Advisory said, “ "The extension of the nationwide lockdown was bound to be extended, as we are still a few days away from flattening the curve. The government's decision is calibrated and prudent. Having said that, we would welcome a gradual opening of economic activity including resumption of construction activity at project sites. The beginning of construction activity has multiple advantages as it brings wages to labourers, cash flow to developers, much needed credit growth for banks and resumption of economic activity in the country. As many home buyers avail loans to fund their real estate purchases, the resumption of construction activity will allow developers to raise demands to their existing customers who in turn will ask banks for disbursements, leading to uptake in credit. The government needs to now look at targeted relief measures for the real estate sector to ensure the industry continues to remain a leading employment generator and the effect of the lockdown do not further hamper the prospects of this category."

Mr. Ramakant Khandelwal, CMO, PAYBACK India, said, “These are unprecedented times. Our country has done well to limit the healthcare crisis so far by taking bold and proactive measures. At the same time, the economic impact is being felt across most of the sectors. There are two types of sectors – one, where the consumers had reduced their consumption or availing of the services even before the nationwide lockdown, like travel, cinemas, restaurants etc, and the other which got impacted largely due to the lockdown. The latter will probably start chugging along, as soon as the lockdown is eased, however the former would still be under stress as it depends a lot on the consumer confidence to return. Given that most of the sectors are inter-dependent, it is very important that each of the sectors return to normalcy, for a full recovery of the economy. For that to happen, a coronavirus-free country is what we hope for, at the earliest. Towards that end, we appreciate the measures taken by the government and our fellow citizens.”

Mr. Anuj Khetan, Director, Vijay Khetan Group said, ‘’The extension of lockdown to curb the spread of Covid-19 is a crucial decision by PM Narendra Modi and we equally support the same. We hope that the Government soon addresses the liquidity crisis in the sector and provides some relief measures to the real estate sector. Hopefully, we will soon see resumption of construction activities with proper safety and precautions in areas that have been least impacted. This will be a major respite to the construction workers who are stranded in the mid of a catastrophe as they survive on daily payments from the contractor for their everyday living expenses. This will, in turn benefit the developer community as well and will ensure some cashflow back in the sector."  

Mr. Dhruv Agarwala, Group CEO, Housing.com, Makaan.com and PropTiger.com said, “Considering that the risk of the spread of the Coronavirus is still high, it was the right decision on the part of the Government to extend the lock-down. However, it is quite obvious that this will have a further adverse impact on the economy that is already under severe stress. We sincerely hope that the Government will, at the earliest, announce a relief package for businesses, many of which are struggling to stay afloat with revenues coming to a virtual standstill.”

Mr. Deepak Kapoor, Director, Gulshan Homz said, “Tough situation calls for tough measures. Considering the current scenario, extension of lock down was very much expected. No doubt, it will adversely impact the economy. To curb the impact, Government must announce one-time restructuring of loans and extend the moratorium on loans to at least six month.”

Mr. Sagar Saxena, Project Head, Spectrum Metro said, “Considering the overall risk, it was expected that lock down will be extended further. We will comply by it in letter and spirit. However, considering the adverse economic impact, Government must announce a relief package for the industry at the earliest.”

Mr. Dhiraj Jain, Director, Mahagun Group said, “At this need of the hour, we stand firmly behind PM’s decision to extend lock down. As a responsible corporate citizen, we will abide by it. At the same time, it is well acknowledged that the lock down has an adverse economic impact. Thus, it is pertinent that Government should announce measures that would help revive the sector at the earliest once situation normalises.”