E-Paper
Sonia writes to Modi, seeks ₹1L-cr for helping MSMEs
New Delhi
New Delhi
Congress president Sonia Gandhi on Saturday urged Prime Minister Narendra Modi to announce an immediate Rs 1 lakh crore “wage protection” package for the revival of Micro, Small and Medium Enterprises (MSMEs), warning that if problems of the sector are not addressed, it could have a devastating effect on the country’s economy.
In her letter to the Prime Minister, she also enumerated suggestions for the revival of the MSME sector, which is reeling under the onslaught of the coronavirus disease (Covid-19) pandemic and the nationwide lockdown that ensued to contain it.
“The last five weeks have brought our nation face to face with several challenges. As we continue our fight against Covid-19, I felt it essential to highlight an economic concern that needs immediate attention and intervention,” Gandhi said.
She said MSMEs contributed close to one third of the nation’s Gross Domestic Product (GDP), accounted for almost 50% of exports, and employed more than 11 crore people.
“At this moment, without appropriate support, more than 6.3 crore (63 million) MSMEs stand on the verge of economic ruin,” Gandhi said.
She demanded an immediate Rs 1 lakh crore “MSME Wage Protection” package as also a credit guarantee fund of an equivalent amount, besides a 24X7 helpline for helping them out of this crisis.
The Congress chief said MSMEs are suffering losses of around Rs 30,000 crore every day due to the nationwide lockdown and efforts should be made to revive these as they are the backbone of the economy.
“Nearly all MSMEs lost sales orders, seen complete cessation of work, and had revenue negatively impacted. If ignored, this issue has the potential of having a devastating and expansive ripple effect on our economy,” the letter read.
“Most worrying of all, 11 crore (110 million) employees are at the risk of losing jobs as MSMEs struggle to pay wages and salaries. The government needs to introduce a series of measures to meet this crisis head-on or risk a much large economic crisis down the road,” she said.
She said the actions taken by the Reserve Bank of India (RBI) must be reflected in banks’ measures to ensure adequate, easy and timely credit supply to MSMEs.
“These measures need to be supported by an expansion and extension of the RBI’s moratorium on payment of loans for the MSMEs beyond the stipulated three months,” added Gandhi.
This is Gandhi’s seventh letter to the Prime Minister since March 23. In previous letters she has asked for a focus on migrant workers and people in rural areas, suspending the Rs 20,000 crore Central Vista project and transferring all money under the ‘PM Cares’ fund to the ‘Prime Ministers National Relief Fund (PM-NRF)’, to fight the pandemic.
Reacting to the letter, Union minister Prakash Javadekar said: “At a time when everyone is fighting a severe crisis, and the people are joining bands with the PM, the Congress party is writing letters. They are busy in negative politics. They don’t work on the ground. The whole world appreciates how India took timely steps to announce the lockdown. But while the whole world appreciates something, the Congress criticises it.”
He addded: “This government has taken care of the MSME sector; 14 crore (140 million) people have been given loans without any collateral. But that issue is not raised by the Congress. When PM Modi and Nitin Gadkari began to speak about the efforts being made, the Congress jumped in too. This government has ensured 20 crore (200 million) women are getting Rs 500 per month,80 crore (800 million) people are getting ration and 8 crore (80 million) farmers are getting money, but the Congress is raising only negative issues.”
