“Start-ups in India have built the world’s most sophisticated digital banking and payment system. But it is unfortunate that about 10 per cent of the total investment in Indian start-ups is Indian capital. In the light of the coronavirus pandemic and the support lent by many start-ups during this testing time, government should consider announcing a special package enhancing the allocation of capital to the start-ups,” said senior Congress leader and former Karnataka minister, RV Deshpande.

Deshpande, in a memorandum to Union Finance Minister Nirmala Sitharaman, said with 40,000 start-ups and 33-plus unicorns India is home to the third largest start-upecosystem generating large employment.

Interest waiver sought

He also highlighted the plight of the aviation, hospitality, travel and tourism sectors, which are facing an uncertain future due to the lockdown and required a bailout package.

In his two-page letter to the Finance Minister, Deshpande said “It is heartening to note that your ministry has initiated a slew of bold economic measures in these critical times through programmes like Pradhan Mantri Garib Kalyan Yojana, Covid-19 Relief Package, and through various other regulatory packages announced by the RBI.”

On issues faced by MSMEs, he said, “The RBI announced a moratorium of three months on the EMI of term loans including OD and CC. But unfortunately, the RBI wants accumulated accrued interest to be paid immediately on the completion of the period! This makes the deferment ‘deadly’.”

“Hence I request waiving of interest on three EMIs as they (MSMEs) are the biggest job creators but the hardest hit due to Covid-19. About 90 per cent of manufacturing jobs are in SMEs. This calls for a stimulus plan of pro-active measures to boost the confidence of the MSMEs.”

Urging that the Centre and the RBI work in tandem for the stimulus plan, Deshpande said medium and long-term measures are needed urgently to limit the damage.

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