Center is patting its back for the Rs 3 lakh crore worth monetary stimulus in the form of collateral free loan backed by moratorium. But the announcement has fallen short of expectations of the MSMEs hit by the Covid pandemic. An India Today TV ground report from Noida found that a slew of measures announced by the Government on Wednesday drew mixed responses from factory owners.
The NOIDA Entrepreneurs Association which has three thousand enterprises as members is not upbeat. It’s media coordinator Saurabh Shrivastava told India Today TV, “Govt issues instructions for house owners, companies to pay salaries and schools not to take fees, there should have been similar orders to banks not to charge interest or power companies not to take fixed charges, we have to pay all dues by availing loan is unjustified.”
Govt’s decision to bear three month’s EPF contributions will not help small size MSMEs much. This packaging firm has 46 permanent employees and has over 10 percent of its employees earning more than Rs 15 thousand salary. Factory owner says even those who qualify will not benefit much.
Sandeep Agarwal, a factory owner said that PF is for future, when our present in not secure what to think of future Govt should have waived six months PF this would have left more cash in hands of employee and the employees would also have saved some.’
However, The Govt decision to disallow foreign bidding in projects over Rs 200 cr has brought some cheers. So has the decision to bailout sick MSME units.
Kulmani Gupta of Indian Industries Association welcomed some of the measures. ‘It will help us in doing things better, liquidity of funds will be available, NPAs which were struggling for funds this package will help em procure more funds,’ he said.
Considered a gateway to Uttar Pradesh, the Noida industrial zone has close to 11 thousand manufacturing units, so far only little over 2000 have resumed operations.