Pandemic-hit industry demands package, moratorium on EMIs

Tribune News Service

Chandigarh, June 3

With all manufacturing sectors remaining 25 to 50 per cent down in April and 50 to 100 per cent down in May due to lockdowns, micro, small and medium enterprises (MSME) in Haryana are foreseeing a sharp V-shaped recovery from June to October.

However, citing major challenges in revival like poor liquidity and acute financial crunch, the industrialists want the government to announce relief measures like moratorium on loan repayment announced last year without any further delay.

Rajive Chawla, Chairman of the Integrated Association of MSMEs of India, said that the government was already more than two months late in announcing relief measures.

“Moratorium like last year could have been announced in April itself. This would have reduced aggravation of business illness,” said Chawla.

Quoting market sources, Chawla said that the sales of top automobile brands has dipped in April and again gone down sharply in May affecting the entire ancillary industry.

“Maruti Suzuki India sold 1,35,879 units in April, but came down to just 32,903 units in May with a dip of 76 per cent; Hyundai Motor India suffered a dip of 49 per cent from 49,002 units to 25,001 units; Tata Motors 29 per cent from 25,095 to 15,181; Mahindra and Mahindra 56 per cent from 18,285 to 8,004 units; and Honda Cars India suffered a dip of 77 per cent in the sales from 9,072 units in April to 2,032 units in May,” said Chawla.

Not the industry alone, even retail, most services, construction, furniture, building materials, consumer goods, capital goods, hospitality, sports, entertainment and exhibitions went down 80-100 per cent in business, he added.

Besides, the manpower has been affected due to deaths and illness during the second wave of the pandemic.

“The MSMEs demand moratorium on EMIs and repayment of loans for six months like announced last year, fresh emergency loans for regular accounts as on March 31, 2021, restructuring scheme with amendments like automatic six-month moratorium,”said Chawla.

Rakesh Chhabra, president of Rai Industries Association in Sonepat district, said: “The service sector and hospitality sector were the first to suffer. The manufacturing sector was allowed to work in most of the states. But due to the fear of lockdown, many migrant workers went to their villages. Most of the automotive companies were also closed for two weeks as oxygen was required for the medical purpose.”