BENGALURU: Small-scale industries in Karnataka have urged the Centre to come to their rescue as the Covid pandemic has again crippled their functioning, and they don’t see an end to their woes anytime soon, even after restrictions imposed to contain Covid spread are completely lifted.
Karnataka Small Scale Industries Association (KASSIA) has written to the Prime Minister and Finance Minister, explaining the need for relief in the coming days in terms of funding support to be back on track. Many of these units, up to 25-30 per cent employing lakhs of people, may shut down in the absence of direct and targeted one-time cash infusion immediately, the association stated.
“The overall economic downturn has been compounded by the pandemic disrupting markets and supply chains. SMEs, in particular, are affected due to this in terms of sales and cash flow problems, labour absenteeism and are not in a position to meet the various commitments and compliances required of them,” KASSIA president KB Arasappa stated.
To reduce the burden on SMEs, they urged the Centre to permit them to pay GST once in three months, relax stipulations on statutory payments like Provident Fund and ESI contributions by extending time for such payments to SMEs, relax non-performing asset norms on SMEs, maintain financial flow to SMEs to meet working capital and other needs in the prevailing circumstances, and speed up payments due to them by PSUs and other State undertakings.
KASSIA urged the finance minister to provide direct financial grants to SMEs by paying 50 per cent of the salaries of these units at least for three months, as this will not only help the units survive but also benefit labour directly. “We request government to extend GST payments and Returns filing deadlines for the months of March, April and May up to June 2021, without penalty and interest to get the desired relief,” they added.
Need for relief and relaxation of norms
Karnataka Small Scale Industries Association (KASSIA) has written to the Prime Minister and Finance Minister, explaining the need for relief in the coming days in terms of funding support to be back on track