Covid-19 Economic Impact: Hit MSMEs, exporters to get relief package

Exporters and MSMEs the two key sectors reeling under coronavirus crisis are likely to get interim financial relief package from the government.

   
msme loan moratorium

As per news reports, exporters and MSMEs the two key sectors reeling under coronavirus crisis are likely to get interim financial relief package from the government.

Reports reveal that among the proposals under consideration are part-waiver of fixed electricity charges, support in salary payment to workers and interest subvention.

       A micro, small and medium enterprises (MSME) ministry official quoted, “After consulting the industry we have compiled the suggestions and sent it to Finance Ministry. The proposals are being discussed and would be announced at the earliest,” he added.

In fact, in the meeting with commerce minister Piyush Goyal, the MSME sector representatives had earlier sought government help for payment of salaries saying they would not be able to disburse salaries and retain staff in absence of government support.

An official said that the MSMEs have conveyed that they have been paying workers’ salaries for the month of March, the real challenge would come in April.

Financial support to the MSMEs and the export sector is important as the two sectors employ a substantial number of people.

Many industry executives feel that the support offered by the government and the RBI so far may not be sufficient to provide liquidity. “The MSME firms generally don’t have much cash reserves and their credit limits are also small,” said an industry executive.

Given that the salary date has already hit and pressure to pay March salaries to workers on time continues, the MSMEs are under huge pressure and want the government to come out with emergency relief measures.