The lockdown due to COVID-19 has generated some severe tensions for the MSME sector and the Odisha Young Entrepreneurs Association (OYEA) has urged the State Government to adopt certain measures to the for their revival.
The president of the organisation, Mihir Kumar Kanungo has suggested the government to loosen the company laws at this time of crisis and to allow transportation services within a 40 km radius of an industrial area for movement of employees. He insisted on opening raw material and spare parts with social distancing measures as their supply is essential for manufacturing units.
Other suggestions include credits with low-interest rates; banks should also be considerate in giving loans to the industries keeping in view factors such as the flow of liquidity, absorption, and unemployment. The reduction in lending rates by the RBI should be immediately implemented for the benefit of the borrowers.
The association has suggested that the wage of employees working in the unit be borne by ESI from March till normalcy is restored, and electricity charges be waived off for at least six months. They also suggested that Input Tax Credit of GST should be credited back to the filers accounts while relaxation under the amnesty scheme ‘Vivad se Viswas’ should be given for at least six months.
It is the responsibility of the OSCI to help the MSMEs in the procurement of raw materials and help ease out its supply without asking for a bank guarantee, said general secretary Suhail Sajjad Shariff.