There is a need for enhanced working capital, relaxed collateral norms, extended moratorium and wage support to provide relief to micro, small and medium enterprises (MSMEs) through the Covid-19 crisis, said the Confederation of Indian Industry (CII).
“With limited resources, MSMEs do not have the capacity to withstand massive shocks like Covid-19. In addition, many MSMEs are an important part of larger supply chains. The health of these MSMEs have a bearing on the entire supply chain, including the large corporates; therefore, special, immediate and substantive support measures are required to see the MSMEs through this crisis”, said Chandrajit Banerjee, Director-General, CII.
Following its suggestions on the economic package for the industry, the CII has submitted its recommendations targeted at providing relief specifically to MSMEs, to the government.
It has recommended that the the UK Sinha Committee recommended fund for MSMEs be expedited, to support venture capital/ private equity firms investing in the MSME sector.
The CII further recommended that government departments making purchases should not impose delay penalties, as delays are bound to happen due to disruptions caused by the lockdown.