CII-Kerala has suggested the State government set up a State Disaster Finance Corporation to provide support to industry including MSME’s during emergency conditions.

This can be a quasi-government entity supported by the World Bank, or ADB with independence, leverage, leadership, and equity. Its objective will be to provide long term loans for 20-25 years for sectors that are affected; paycheck protection loans to retain employees; sector-based short term loans to tide over adverse periods. This is a proven model in many developed countries, said Thomas John Muthoot, chairman, CII-Kerala during an interactive session with the Chief Minister Pinarayi Vijayan.

The interaction was attended by 180 senior industry representatives from various sectors. EP Jayarajan, the Industries Minister and K Ellangovan, Principal Secretary, Industries were also present.

tHE CII-Chairman pointed out that the magnitude of the impact of the Covid 19 on the economy is very different from the global meltdown in 2008 and the demonetisation. Its impact on the economy is manifold and there is a lot of uncertainty and fear. The most affected sectors would be retail, MSME and tourism. He urged the Government to support the different sectors of the industry so that there is no mass retrenchment or such steps from business houses.

The Chief Minister requested CII to create task forces to support and equip the medium and small scale companies to produce healthcare items such as PPEs, ventilators, N-95 masks and PCR test kits which will create huge job opportunity in the State. The Chief Minister also requested the industry to support traditional industries such as coir and coconut since these are large employment-generating industries.

He also assured immediate support in areas related to the wage hike, licence renewal and stopping revenue recovery processes.