Federation of Indian Chambers of Commerce and Industry (Ficci) has asked for immediate support for the Indian economy that involves Rs 4.5 lakh crore for the MSME sector, saying that companies need it in addition to the Rs 2.5 lakh crore blocked in refunds and other government dues to navigate over the crisis due to the lockdown.
Besides, FICCI president Sangeeta Reddy also requested for interest-free and collateral-free loans to MSME companies that have a turnover of less than 50 crores for up to 12 months period depending on the sector to enable them for covering fixed costs, salaries, and other operational expenses and an alternate mechanism for non-GST paying companies.
“Additional fiscal support is required for vulnerable communities over and above the sum provided for in earlier announced ‘Garib Kalyan Yojana’, fiscal support to MSMEs for getting them back on track, upgradation of healthcare infrastructure to effectively deal with current situation, and support for sectors that have taken maximum hit, like aviation and tourism,” said Sangeeta Reddy, FICCI president on Monday.
In a letter to Finance Minister Nirmala Sitharaman, Ficci President Sangita Reddy has stated that banks would need Rs 10,000 crore as a liquidity vailablity that assists them to restructure or provide new loans to large companies whose balance sheets have been impaired due to coronavirus pandemic.
Besides, she said that banks would require Rs 40,000 crore as a guarantee for a four-year period in a bid to enable them to extend loans. This would be giving benefit to the companies and help them in reviving the supply chains, which largely consist of small and medium-sized enterprises (SMEs).
The letter mentioned that there is a need for the ‘Bharat Self-Sufficiency Fund’ for innovation, construction, and manufacturing to take the advantage of the disruption in global supply chains.