In view of MSMEs hit by the Covid lockdown, the FICCI has urged the State Government to urgently notify a suitable incentive scheme to help large number of MSME units meet their fixed costs, especially the salaries to their employees.
FICCI national president Dr Sangeeta Reddy has made a submission to Chief Minister Naveen Patnaik in this regard.
“Currently, the MSMEs are running out of money to start operations. Nil cash inflow, delayed payment and expenses towards salaries of workforce and other fixed costs have steered MSMEs into existential crisis,” she mentioned.
He urged the Chief Minister to plan a scheme akin to the “Haryana MSME Revival Interest Benefit Scheme” adopted by the Haryana Government recently.
Under the scheme, eligible MSMEs would get 100 per cent interest benefit on loans availed for payment of wages of employees and/or other expenses up to a maximum of Rs. 20,000 per employee. The interest benefit would be limited to the interest paid by the unit to the bank / financial institution up-to a period of six months. The interest benefit shall be calculated at the rate of interest of maximum 8% p.a. or actual rate of interest charged by the bank / financial institution on Term loan/ working capital loan whichever is lower. All the MSME units functional as on March 15, 2020 can be declared eligible for availing benefits of thescheme.
