The Entrepreneurs and Financial Customers Association of India (EFCAI) has urged Union Finance Minister Nirmala Sitharaman to provide exclusive relief packages to MSMEs so that they can make up losses suffered by them due to the COVID-19 lockdown.
In a letter, EFCAI working president Harendra N Mahapatra mentioned that most of the problems of the MSMEs are finance related and the banks are averse to funding MEMEs. By funding the SIDBI or other banks, it will never help the MSMEs unless an innovative system of directly infusion of funds to their accounts is introduced as a one-time measure to make good COVID-19 losses.
Mahapatra demanded that the EMIs shifted to one year from March 1, 2020 to February-end 2021. The interest on working capital or OD limit or on Term Loans waived for six months. To restart the operations, at least 50 per cent of the existing limits of all MSMEs registered under the GST to be enhanced suo moto and credited to their accounts automatically.
The relaxation for Provident Fund, ESIC, GST and Income
Tax filing date and other compliances ect should be shifted by one year to February-end 2021. The CIBIL and other CICs should be advised not to treat the moratorium period as default and the NPA norms should be shifted to 180 days.
Mahapatra urged Sitharaman to provide the reliefs by April 30.
In another letter to the Small Industries Development Bank of India (SIDBI) CMD, Mahapatra urged that the loan extended by the SIDBI under SAFE (SIDBI Assistance to Facilitate Emergency response against coronavirus) up to Rs 2 crore may kindly be extended to all MSME manufacturing units registered under the GST. This loan should have no other conditions attached and at least 50% of the existing sanctioned limit must be enhanced and disbursed through their respective bankers suo moto, urged Mahapatra.