In Kerala, MSMEs hit by COVID-19 lockdown demand a special package for revival
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The almost 2.5 lakh micro, small and medium-scale industries (MSMEs) in Kerala, using greater than two million folks, are feeling the pinch of COVID-19 lockdown restrictions hampering motion of staff and uncooked supplies.
They additionally face monetary liabilities within the type of fastened cost on related energy load, statutory funds like PF and ESI contributions in addition to leases.
Only about half of the economic models which might be exempted from the COVID-19 lockdown are operational now, stated K. A. Joseph, an industrial unit proprietor in Kalamassery on Tuesday.
He stated that about 20 per cent of the round 2.5 lakh models are important providers which were permitted to function amid the lockdown. However, solely about half of those models are operational now for numerous causes starting from uncooked materials scarcity to scarcity of staff, he stated.
Ancillary models
One of the worst-hit sectors is export-oriented models, stated Mr. Joseph. These models have to work to see that their orders are carried out in a well timed method. But the operations of those export models additionally rely upon the working of ancillary models and it has grow to be tough to get permission for these models to function amid the lockdown.
In a latest enchantment to the State authorities, Kerala State Small Industries Association stated that MSMEs continued to reel below the fallout of occasions just like the 2018 and 2019 floods, the primary yr of COVID and the current lockdown to comprise the pandemic. To nurse again the MSMEs to well being, the State should step in and declare a special package and supply some aid measures.
Interest subsidy
In a letter to K. Elangovan, Principal Secretary, Industries, from KSSIA president M. Khalid stated that a broader package of curiosity subsidy would assist the MSMEs in a large method.
The industries additionally need the Kerala State Electricity Board (KSEB) to not impose fastened prices throughout the interval when industrial models usually are not operational. The models additionally need the facility board to offer an prolonged time period to pay the payments, avoiding fines, as soon as the models restarted operations.
The affiliation can also be of the view that every one the MSMEs ought to be allowed to function with the pandemic protocol in place. There is a case for permitting defence and aerospace-oriented models and hospital tools makers to function by following the protocol, KSSIA stated.
The models additionally need a moratorium for a yr to permit them to repay the loans with out curiosity in addition to a moratorium on fee of payments from native self-government our bodies that embody water prices, taxes, licence payment and so forth.
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