The southern region of the Federation of Association of Small Industries of India (FASII) has urged the Centre to defer announcement of non-performing assets (NPA) of any MSME unit March of 2021 in the wake of Covid 19. “The effect of Covid-19 has led the sector from economic slowdown to economic shutdown,” secretary of the southern region of the federation M V Swamynathan said and added the complete lockdown enforced by the Centre under the provision of the Epidemic Disease Act has led to the cancellation of orders and hit hard on the sector. “MSMEs have been going through a testing time for the last two years and have plunged further following the outbreak of the virus,” he said.
The federation urged the Centre and respective state governments to look into its pleas of the members in Andhra Pradesh, Telangana, Kerala, Karnataka, Puducherry and Tamil Nadu. As stopgap measures, the Centre should defer six months payment of ESI, PF and GST and also defer advance tax and IT returns filing for the same period. The federation further pleaded the government to extend moratorium (a legal authorization to postpone payment) by one year with immediate effect for repayment of principal and interest amounts to the banks.
Meanwhile, the federation has also petitioned Tamil Nadu government to defer property, professional and statutory taxes and EB for the following six months and increase the capital subsidy up to 50% for loans up to Rs 50 lakh to revamp the micro sector. “The state government has considered deferring SIDCO instalments and allotment of payments for six months,” he said and urged the government to enrol Tamil Nadu Small and Tiny Industries Association (TANSTIA), the apex body of MSME associations, in the monitoring committee that would be formed soon.