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Flagging payment of salaries and loan EMIs as key constraints faced by the MSMEs (micro small and medium enterprises) across the country, the All India Manufacturers Organisation (AIMO) has sought immediate relief measures from the government for the survival of units and job security of millions.
In a survey conducted through social media platforms among the SME owners, self-employed, corporate CEOs and experts on the list of issues to be prioritised, majority of them in all four categories said salary payments and repayment of loan EMI were the biggest concern at this moment.
In SME-owner category, salary is the highest priority of concern, while in the self-employed, loan EMI is the highest concern. For corporates too, salary is the highest priority of concern. Experts also echoed the same.
“AIMO has taken the responsibility of bringing associations across India under one platform in order to understand the priorities of MSMEs and self-employed who are struggling for survival. This survey was conducted on Saturday and more than 17,000 people responded on social media platforms about key concerns,” said KE Raghunathan, former president, AIMO.
Relief measures
To help MSMEs pay the salaries, AIMO has sought relief measures that include removal of the ‘action to be taken for non-payment of salary circular’ issued to alleviate the fear, release of all funds kept with government and PSU, ad hoc increase in the OCC (open cash credit) limits for existing account holders by 25 per cent and payment of ₹5 lakh to start up enterprises as approved by DIPP and not enjoying any bank facility. Otherwise, the government can simply pay a sum of ₹15,000 per employee during the curfew period.
It has also suggested a moratorium of six months without interest burden for any loan up to ₹5 crore. All types of loans – individual or business, term loan, working capital, vehicle, personal, mortgage, housing or credit card loan – must be given this moratorium.
By paying ₹15,000 each to the 25 million employees in the MSME sector for the lockdown period will cost about ₹37,500 crore, while the outgo on account of 6-month EMI moratorium on loans up to ₹5crore extended to people or firms will be about ₹50,000 crore (for six months).
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