Consortium of Indian Associations (CIA) has lashed out the Centre for not extending adequate support to Micro and Small Enterprises (MSEs) during the crisis-hit period.
“MSEs are bursting and unemployment will be visible from August onwards as notice period to relieve employees will be over. Non-performing assets are expected to touch 30% by December 2020, if rescheduling of loans is not done. It is going to have severe impact on MSEs and many will close down,” said K.E. Raghunathan, convenor, CIA.
According to him, even after 75 days of implementation of emergency credit line guarantee scheme, it had not reached 25% of disbursal or beneficiaries estimated.
“It is a gross injustice to MSEs. Instead of understanding the issues in the scheme and relaxing the conditions of the scheme with eligibility to all MSEs, the Centre has included all medium scale industries and professionals just to complete the target of disbursal,” he alleged.
Mentioning that the ground level seriousness was not being felt or redressed and the Centre had to protect the interest of MSEs, he urged for extension of moratorium of loan till March 2021 and waiver of interest as it was impossible for MSEs to pay for equated monthly instalments under these circumstances.
Regarding the Centre’s claim that green shoots were visibile through Goods and Services Tax July collections, he said: “Out of the total collection of ₹87,422 crore for July, let us minus about ₹20,224 crore towards imports and ₹807 crore towards cess on imports, leaving only ₹66,391 crore as collection without micro enterprises. Which remains almost 70% same as COVID-19 supplies. Where are engineering businesses and green shoots?,” he asked.