The report today that RBI has filed its affidavit in SC pleading for vacating its stay order on classification of NPA and with Centre ruling out further relief measures under loan moratorium scheme , it is a BIG BLOW to Several Micro and Small Enterprises . Many entrepreneurs are of the opinion that they have been abandoned for no fault of theirs.Even today few sectors are yet to open up . CIA pleads Hon’ble PM to reconsider these decisions on the following grounds 1.The lock down was implemented suddenly in National Interest and it was extended for nearly 6 months for which MSMEs are not responsible 2. The next 6 months of business activity is very uncertain in this FY 3. Corona impact is still felt high in the field and vaccine is yet to be found 4. Though lost completely the revenue for last 6 months, we still have to pay for all other fixed overheads 5.Entrepreneurs are finding it extremely difficult to make ends meet and survive. 6. It has reached a stage of Do or Die for over 30% of Micro and Small Enterprises, as per our survey .
Instead of getting support to the ailing enterprises with relief measures , it is unfortunate that suffering entrepreneurs have approched SC for rendering justice to save the Genuine, Honest entrepreneurs. CIA study report already points about 21% of EMI defaults in Sept and with ensuing festival season and expenses , it is impossible to keep our nose above water, unless our PM intervenes and save MSME by granting the following measures till 31.3.2021. 1. Extension of NPA classification action 2. Grant of installment payments of statutory dues of April to Sept’20 3. Abolishing capital gain tax so that we can sell other assets to put it back in business 4. Granting EMI moratoriums 5. Waiver of interest on interest for loans up to Rs.5 cr . CIA , representing over 30 national , regional Associations once again plead that situation is very volatile on ground and unless proper remedial care is given in time, revival would be very difficult .