Millions of Small and Medium Businesses are impacted heavily due to Corona. Most of these businesses are shut more than a month now with no visibility of the future. All the factory owners are exhausted with their working capital in paying huge charges & wages. Maximum MSME are left with no capital to start the industries again.

Key Question and Answers for MSME from State & Central Government:

1. Employee Salaries:

How Small businesses will pay their employees in next week due to cash flow issues. Request for immediate intervention around employee compensation. Salaries must be paid through ESIC/LABOUR FUND/EPFO/Govt. or any other Package by Government to pay 100% wages of the employees for the lockdown Period.

2. Government guidelines on ESIC and PF paid by Govt.: 

Condition of 90% of workforce below Rs.15000 for EPFO benefit is of no use to DELHI MSME as minimum wages for semi skilled and skilled in DELHI are above Rs.15000. Such rule should be modified to bring DELHI MSME into this Scheme. And it should be applicable for units engaging more than 100 workers also.

3. Action plan by Government for opening up businesses:

Government should provide visibility on the action plan to open Business activities. Every Businessman/MSME requires Unsecured Working capital which should be provided to MSME for a period of 5 years @ 2%.  and All Current loans ROI should be subsidised by 50% as after lockdown no business/very minimal business is expected. Removal of foreclosure charges enable MSME’s to easily switch to other banks if they are not getting best rates.  SIDBI has given option to take fresh Loans at subsidised rates to business activity directly related to COVID 19 supplies, This should be applicable to all activities.

4. Moratorium Period:

EMI Moratorium period be of 3 months starting from the end of lockdown. And such period should be Interest free. Any extra charges should be waved off.

5. Electricity Charges

Electricity charges should be subsidised by at least 50% to minimise cost and improve future exports. As compared to China our electricity charges are already double. Moreover the fixed charges should be removed completely.

6. Other Charges:

Property tax, trade licence fee, renewal of other permissions like DPCC, House tax for 2020-2021 All licence to be renewed automatically for 2 years without renewal FEE. Demurrage charges to be made free for shipment stuck at ports. Also financial assisstance should be provided to exporters for shipments held at ports or cancelled by buyers. All ITC/GST/Income Tax/Duty drawback refunds above 5 Lac should be disbursed immidiately.  

Mitro !!

Let’s raise our voices during tough time like this otherwise our businesses will shut. As their is no business expected in future due to HIGH UNCERTAINITY.

Do sign this letter and forward to the maximum number of businesses. LET’S DO THIS !!