PHDCCI calls for stimulus package to support economy

NEW DELHI:  Industry chamber PHDCCI has shot off a letter to the government seeking a “substantial” stimulus package including banning steel exports to China, to support economic growth amid the re-emergence of Covid-19 cases.

It has submitted a 17-point  recommendations to Finance Minister Nirmala Sitharaman on financial and structural support to Micro, Small and medium Enterprises (MSMEs) such as extending the moratorium period and offering concessional rates of interest on borrowings. It has asked for unhindered operations of all business and industrial operations across the value chain as any disruption could cause severe economic hardships including reverse migration of labour.

“The industry body has recommended a substantial stimulus package to support the economy, trade, and industry in this extremely difficult time,” the chamber said in a statement. The recommendations include extension of ECGLS (Emergency Credit line Guarantee Scheme) to March 31, 2022, with an increase in the amount from Rs 3 lakh crore to Rs 6 lakh crore.

It has also suggested an increase in the limit of the ECGLS credit from the current 20 per cent. Further the suggestions include reduction in the TDS rate for 2021-22 to the tune of 50 per cent; imposition of 35 per cent export duty on steel; levy of uniform duty on all forms of iron ore exports including pellets; and cut in GST rates for Ayush industry.

In a separate statement, the chamber said that there is also an urgent need to ramp up the production of Covaxin and Covishield through voluntary licensing. Voluntary Licensing refers to the authorization given by the patent holder to a third party to manufacture and sell the product on the basis of mutually agreed terms.