Busines

‘MSMEs need extension of moratorium’

The Consortium of Indian Associations (CIA) has called for extension of loan moratorium, waiver of interest on such loans and complete waiver of statutory payments till March 2021.

Failure to do so would lead to 80% of its members representing micro, small and medium enterprises (MSMEs) turning defaulters in the next three months, CIA Convenor K.E. Raghunathan said in a statement.

The CIA has been urging the RBI to extend the moratorium period, which ended on August 31, as most MSME units had remained inactive for the last five months. However, the central bank was yet to respond, he said.

“Most of our members are experiencing severe cash flow and expressed their inability to meet salary, statutory expenses, machine maintenance and supplier payments among other issues. It is in times like these, they require handholding to regain strength and to conduct business in a conducive manner to create more jobs,” he said.

The CIA also pleaded for complete waiver of statutory payments for micro enterprises from provident fund, employees' state insurance, tax deducted at source, goods and service tax till March 2021.

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