Telengana’s KTR Urged Union Govt For MSMEs Loan Moratorium
In his letter addressed to Union Finance Minister Nirmala Sitharaman, KTR stated that considering the sharp decline in Covid-19 cases in the country and recovery of modest economic activities, the MSME sector still requires support.
IT and Industries Minister KT Rama Rao urged the Union government to provide a moratorium against the loans availed by the MSMEs till March 31, 2022.
Reportedly, in his letter addressed to Union Finance Minister Nirmala Sitharaman, KTR stated that considering the sharp decline in Covid-19 cases in the country and recovery of modest economic activities, the MSME sector still requires support.
“Looking at the seriousness of loss of business and declining revenues of the MSMEs, it will be justified if the loans availed by the MSMEs are given a moratorium till March 31st, 2022 without any accrual of interest during the moratorium period,” he suggested.
According to him, the support would provide big relief to MSMEs and could help them get back to normalcy.
Apprising the Finance Minister that Hyderabad and surrounding areas have been major hubs for the manufacturing sector for the past five decades, with a predominance of MSME industries. However, due to pandemic-induced restrictions and disruptions since last year, the MSMEs have been severely affected.
“Though the Government of Telangana did not put any restrictions on industrial activities during the recent second wave of the pandemic, the restrictions in surrounding states had a major impact on the functioning of the industries in Telangana,” he said.
KTR further pointed out that another reason for the slowdown of industrial activities was the shortage of labour that typically comes to Telangana from other States.
In view of this, the Centre should take up supportive measures in favor of the MSMEs,” he said.