Maharashtra Government Considering Relief Package For Lockdown-Hit MSME Sector, Says Industries Minister Subhash Desai
In order to provide relief to the MSME sector, severely hit by the coronavirus-induced lockdown, the Maharashtra government is considering a financial package.
Mumbai, August 25: In order to provide relief to the Micro Small and Medium Enterprises (MSME) sector which has been severely hit by the coronavirus-induced lockdown, the Maharashtra government is considering a financial package, Industries Minister Subhash Desai has said. As many as 20 lakh units are registered as MSMEs in Maharashtra. Of them, six lakh are in the manufacturing sector, and the rest in the service sector. Electricity Bills Row: Sop For 1.14 Crore Households, Maharashtra Govt to Bear Cost of 'Additional Units' Consumed in Total Lockdown Months, Says Report.
"The MSME sector has asked for relief, including interest subvention, relief in electricity duty and support for wages to be dispensed during the lockdown," Subhash Desai was quoted by TOI as saying. "We will consider providing a relief package after this issue comes up in the cabinet," he added. According to Indian Merchants Chamber President Rajiv Podar, most MSMEs are facing a shortage of fund. Maharashtra 'Mission Begin Again': Lockdown Extended Till August 31, Malls And Market Complexes Allowed to Open in Mumbai, Pune, Malegaon And Other Cities.
"In addition, 65% of MSMEs are below the investable grade and are, therefore, not able to access the Centre’s relief package. Also, the RBI’s interest rate transmission has not trickled to MSMEs," Podar said. Anant Singhania, Director of JK Organisation and CEO of JK Enterprises, echoed Podar's concern of fund crunch. The industrial sector on the whole, “faces a funding challenge since cash flow has come to a grinding halt," Singhania said.
He added that inter-state and intra-state restrictions on movement of vehicles did have an adverse impavt on transportaion of goods. Despite relaxations under government's 'unlocks', offices are keeping fewer employees, which accordng to Singhania, was also making things difficult. "Industry is functioning at a sub-optimal level, facing a lack of demand and lack of workers," he said.
(The above story first appeared on LatestLY on Aug 25, 2020 03:29 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).