AIMO makes a fervent plea to save MSME’s across the country

All India Manufacturers Organisation, (AIMO) an Apex trade body focused on the interests of the MSME sector today endorsed that the Lockdown announced due to the Corona Virus was absolutely essential. AIMO made a plea to the Government that if the right support Packages, Incentives and measures were not provided to the MSME’s the Lockdown could well turn into a ShutDown India. According to Sampath Raman, Chairman, Karnataka State Board (AIMO) “We would like to acknowledge the steps taken by the Finance Minister regarding the easing of Compliance which was taken to ease the business situation. Several sectors like Automobile, Aviation, Hospitality, Apparel, Consumer Durables, Electronics, Hotels, Tourism, Restaurants and Bars, The Entertainment Industry, Airlines, BPO, Seafood and Livestock, Construction and Real Estate, Transportation are among the worst hit by this epidemic. All the MSME’s / Self Employed Individuals / Entrepreneurs associated OR whose revenues depend either directly or indirectly on these sectors have been on the verge of a Shutdown situation.” MSMEs are facing Complete Loss of revenues , COMPOUNDED with extended credit cycles impacting Statutory payments like PF / ESI / GST/TDS/TAXES/Term Loans and Interest Payments , Our members and their associates are unable to pay wages to staff due to lack of revenue and lack of production . Late delivery charges or cancelation of orders or demurrages. Work from Home (WFH) is applicable to less than 8% of the core MSME and Services sector and also WFH has seen a drop in over 63% productivity in the service industry. The Services sector has seen mass migration of Labour to the villages. AIMO has requested the Finance Minister to waiver Bank Interest like it was done for Farmers, Instruct banks not to make Entrepreneurs’ as NPA for lack of interest payment till Dec 31st 2020. If certain banks and airlines and Corporates bailed out even the certain MSME’s should be bailed out considering MSMEs employ over 121 million people in this country. If Indian Banks write off large sums of loans of Large Corporates why the struggling Entrepreneur community are being harassed for recovery even though their loans are fully secured using SARFASI act. Freeze on Litigations for a period of 6 months to enable Entrepreneurs to find their feet back and focus on business.