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The Indian Polyurethane Association (TIPA) has placed a request with the Centre to ease the functioning of the sector in order to help it sustain the current coronavirus pandemic.
The body comprising of raw material, machinery manufacturers and processors utilizing Polyurethane in applications including mattresses, furniture, automotive, building & construction, refrigeration, cold storages, footwear, paints, and adhesives, stated that it has been highly affected due to the ongoing Covid-19 pandemic, beset with their own challenges of Small and Medium-scale sector and the stoppage of imports of raw material.
In its official release, the body mentioned taking all factors into consideration, the government registered body has taken this step as a directive of all its stakeholders.
In a formal letter to Nirmala Sitharaman, Minister of Finance and Corporate Affairs, the Association of Polyurethane industry has detailed out a few requisites that require her attention for the survival of the industry.
In the letter, it urged for the release of GST refunds to Excise Exempted Units at the earliest and accelerating the GST refunds to improve the Cash Flow. Additionally, deferment of GST deposits up to 90 days.
The body asked for the support of 50 per cent wages from the government, pursuant to the Government’s mandate on workers being paid in full for the lock-down period. The government may also use ESI funds for the same.
Suggestions and requests
TIPA suggested that the Employer and Employee contribution towards PF and ESI should be borne by the Government for a period of three months only, as payment of wages is mandatory for workers, with the postponement of Advance Tax due for June 2020 to Sept 2020.
TIPA asked for an increase of credit limit to 30 per cent from 25 per cent without any additional collateral or conditions, on an ad-hoc basis.
It further requested banks to reduce the margin money from 25 per cent currently to 10 per cent. The Debtor’s limit, including a single party limit, should also be increased by 60 days by the banks. Loan installments may be deferred by 90 days by the banks without charging any interest for this period.
The body appealed for the reduction of customs duty and surcharges by 50 per cent for the next three months. The Demurrage charges, Port/land charges, CFS Charges, late filing charges all due to the 40 days lock-down should also be waived since several containers of the raw materials are in Port/ICD, which cannot be moved due to transportation problems, the company mentioned in its official release.
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