Help us pay salaries, Kassia urges Nirmala Sitharaman
The Karnataka Small Scale Industries Association (Kassia) has urged the Union authorities to supply direct monetary grants to small and medium enterprises (SMEs) by paying 50% of the salaries of those items not less than for the subsequent three months.
“This will not only help keep these units and their employees alive but will also stimulate the economy in multiple ways,” the trade physique wrote to Union Finance Minister Nirmala Sitharaman.
In the absence of a fast and focused one-time money infusion into the sector, some 25 to 30 per cent of the SMEs in Karnataka using lakhs of individuals might utterly exit of enterprise, it cautioned.
“Unfortunately, the COVID-19 pandemic has again crippled the functioning of the SMEs and we do not see an end to their woes any time soon. Therefore it is imperative that they get some support, especially when supply chains are getting out of sync once again for them,” wrote Kassia president K.B. Arasappa in his letter.
Kassia insisted that the SMEs must be given credit score at 4% curiosity for a interval of 4 years in order that they’d have the ability to revive and ramp up manufacturing and know-how. In addition to this, it requested the federal government to waive curiosity cost for 3 months.
Further, the trade physique additionally sought an extension of GST funds and tax returns submitting deadlines for the months of March to June 2021 with out penalty.