NEW DELHI: The 19-day lockdown extension may save lives but not livelihoods in the absence of an effective and sizeable sector-specific rescue package, say industry bodies.
All three industry bodies —Confederation of Indian Industry (CII), Federation of Indian Chambers of Commerce & Industry (FICCI) and Associated Chambers of Commerce (ASSOCHAM) — have supported the calibrated opening up of economy, but mooted for a thumping financial package in a bid to aid trade, agriculture and industries to weather the crisis caused due to coronavirus.
"The lockdown extension is a wise move, but it has economic costs. The situation may become unsustainable for the industry that is already struggling to stay afloat in the coming weeks, making it extremely important for the government to announce a larger financial package. There is not much alternative but to spend throughout the crisis to keep the economic lifeline alive and robust," ASSOCHAM secretary general Deepak Sood said.
The industry body, he said, has submitted specific suggestions such as rollover of bank loans across the board, further slashing the interest rates, immediate amendments in the IBC Act for putting it in abeyance for at least six months and changes in the RBI rules to allow banks for liberal lending without the fear of NPA slippages. Furthermore, moratorium on EMIs and corporate debt repayments also needs refinement at operational level.
Last week, the government had announced a Rs 1.7 lakh crore package aimed at providing relief to those hit hard by the lockdown, but that’s not enough. All eyes are on an economic package that would include interim sector-specific measures for their survival.
"Estimates show that India may be losing close to Rs 40,000 crore daily due to the nationwide lockdown with an estimated loss amounting to Rs 7-8 lakh crore during the past 21 days," said FICCI president Sangita Reddy.
CII has also submitted recommendations on the stimulus package with a special focus on MSMEs. According to CII director general Chandrajit Banerjee, there is a need for enhanced working capital, relaxed collateral norms, extended moratorium and wage support to provide relief to small and medium businesses through the coronavirus crisis.
As India entered Lockdown 2.0, exemptions have been proposed in at least 15 sectors including MSMEs with export commitments, fertiliser and seed industry for Kharif season, sectors with a high degree of automation, as well as food and beverages.
CII has proposed exemp-tions in at least 15 sectors including MSMEs with export commitments, fertiliser and seed industry for Kharif season, sectors with high degree of automation, as well as food and beverages