IT Minister K.T. Rama Rao has sought support for the IT industry in Hyderabad, particularly for small and medium scale units, to ensure enough cash flow for them for healthy functioning and to avoid lay offs.
In a letter to Union IT Minister Ravi Shankar Prasad, he sought reimbursement of I-T dues upto 100% for those below ₹25 lakh and 50% for those above ₹ 25 lakh.
He also wanted GST dues to be immediately released or add the amounts to the credit ledger that can be adjusted against any of the heads. These companies have paid several crores of rupees under various heads but got clarity on payments and adjustments much later.
“Even the Finance Minister said that such amounts will be released in 30 days but it needs to be expedited,” he said. He also sought 50% enhancement on the line of credit to SMEs as this would take care of payroll for at least 3 to 4 months and avoid lay offs.
“The sunset clause for direct benefits of SEZ units should be extended until March 2021 from March 31, 2020, as many companies couldn’t file their applications on time,” he said, adding that the Telangana government has already submitted a letter to the Commerce Ministry in this regard. Mr. KTR also wanted the employee-per sq.ft. ratio to be fixed at 100-125 sq.ft., to ensure better social distancing practices once all the units become fully operational.