‘Provide interest-free loans to MSMEs for five years’
The president of Amritsar Textile Processor Association, Krishan Kumar Sharma, who is the managing director of SG Group of Companies, a diverse groups with interests in real estate, textile processing and hospitality sectors, shares his views on the affect of the lockdown on the businesses in an interview with Neeraj Bagga. Sharma, who is the president of the local chapter of Confederation of Real Estate Developers Association of India, stresses the need to take care of migrants and bring them back to eliminate the shortage of labourers. Excerpts:
How has the lockdown affected your businesses?
The textile, real estate and hospitality arms of our business have been lying shut since the lockdown.
Do you expect any of your businesses to start running in the near future?
The resumption of our businesses is not expected in the near future as labourers are not available. Most of them are migrants who have already left for their native places. We are also facing a financial crunch as payments from outstation traders, who were given supplies before the Covid-19 pandemic, are not forthcoming.
Have you paid salaries to your workers during the lockdown?
Although we have no funds to release salaries, we have been paying the labourers by taking loans and selling our stock at low rates.
What is the share of online trading in your profession?
The share of online trading in our profession, except hospitality, stands at five to 10 per cent.
What lessons have you learnt from the lockdown as a businessman?
I have learnt that survival is more important than double digit growth. There is no alternative to liquidity. Entrepreneurs must have reserve of it apart from the one in working capital to support the business in case of any such situation.
How do you take the current crises — a challenge or an opportunity?
I consider the current crises as a challenge. The demand will return only when the pandemic abates.
What are your expectations from the government?
Migrant labourers should be brought back by providing free transport to enable the businesses to resume functioning in full swing. Rent-free accommodation must be provided to them. Interest-free loan up to Rs5 crore must be provided to MSMEs for a period of one year and thereafter the interest charged must be five per cent. Electricity rates must be reduced by up to 50 per cent and the power bills for the lockdown be waived off. PF contribution of both employees and employers be deposited by the government till March 31, 2021.
