30% MSMEs Under Huge Pressure to Survive If Lockdown Further Extended: KASSIA

Analysing today's crisis situation from COVID Pandemic, the Karnataka Small Scale Industries Association (KASSIA) has estimated that 30 per cent Micro, Small and Medium Enterprises (MSMEs) will be shut down.

KASSIA said with the lockdown being extended till May 3rd, the micro and small enterprises will further find it more difficult to restart operations.

''While it is not our case that the need to contain the virus is recklessly flouted, the concern is of estimates that say that post corona crisis, over 30 per cent of SMEs will shut down, which may result in loss of employment to lakhs of employees,'' KASSIA added.

"We have been requesting both Central and State governments from the beginning of the present crisis to come out with a package to help the SMEs to sail over the present crisis," said KASSIA.

KASSIA further said that industry is required to pay wages and salaries without production or sales so governments needs to come with a meaningful package.

''In these hard times what we require from the government is to come out with a meaningful package to revive the industry, post corona. It should be in the nature of payroll support for SMEs, reduction in bank interest, supply working capital at 4 per cent interest, waiver of interest on OD/CC/Term loan for lockdown period, reduce electricity tariffs, exempt payment of fixed charges for a year, reduce G S T on SMEs and ensure that funds are made available for the SME borrowers, among others,'' KASSIA added.