SME Times News Bureau | 20 Mar, 2020
In a meeting with Finance Minister, the MSME ministry on Friday sought
deferment of payments liability like goods and services tax, loan repayment and
electricity bills. It has also sought a moratorium for repayment of MSME loans.
Some of theses measures may be announced soon, said people in the know.
Finance Minister Nirmala Sitharaman set the ball rolling on finalising India's
strategy to combat the coronavirus pandemic and prevent its spread from causing
big damage to the economy.
The FM held separate meetings with ministers who hold key economic portfolios
including Animal Husbandry, Dairy and Fisheries; Civil Aviation; MSMEs; and
Tourism at her office in North Block. Officials from thes ministries were also
present during the discussions.
Briefing reporters after the meeting, Sitharaman said: "We had to hold
these meetings considering the urgency (arising from the coronavirus
outbreak)..."
The decisions and recommendations of these meetings will be used as inputs for
the economic response taskforce, that has been announced by Prime Minister
Narendra Modi, in his address to the nation on Thursday evening, to assess sector-wise
impact of the pandemic, and suggest measures to mitigate the losses.
The taskforce which is yet to be constituted will also be headed the Finance
Minister.
Sitharaman also mentioned the latest steps taken by the security markets
regulator SEBI to ensure stability in the financial markets, which have seen a
severe bear run in the past couple of weeks.
Tourism Minister Prahlad Singh Patel said that he has informed her about the
state of the tourism sector which has taken the maximum hit due to the
coronavirus outbreak.
He said that currently assessment is being made for the grant of any relief to
the tourism sector.
On the issue of pay cuts and job cuts announced by some private airlines, Civil
Aviation Minister Hardeep Puri said: "We are addressing all the concerns,
constructively."
Addressing the nation on the coronavirus crisis on Thursday, the Prime Minister
announced the creation of a Covid-19 economic response task force, which would
assess the requirements of various sectors and also oversee implementation of
the proposed measures.
The decision comes in the wake of severe impact of Covid-19 on several sectors,
including aviation, hospitality and tourism along with the overall economy.
The task force is likely at measures, such as extension of loan tenors for the
micro, small and medium enterprises (MSMEs) and relaxing NPA (non-performing
assets) norms, while on the taxation part, GST may be waived on hospitality and
tourism sectors.