Noida entrepreneurs demand interest-free loans to cope with Covid impact

Entrepreneurs and factory owners have demanded interest-free loans and other benefits for a year to cope with the financial impact of the Covid-19 pandemic. They

Entrepreneurs and factory owners have demanded interest-free loans and other benefits for a year to cope with the financial impact of the Covid-19 pandemic. They said that in the current circumstance, they will not be able to continue paying salary to staff as businesses are at a standstill.

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The state government has directed factory owners, entrepreneurs and other employers to continue paying salaries to their respective staff during the lockdown.

Members of the Noida entrepreneurs’ association (NEA), an apex body representing at least 12,000 industrial units including micro, small and medium enterprises (MSME), said that the government should declare “zero period” until industries remain affected due to the pandemic.

They estimate a loss of around ₹40,000 crore due to the shutdown in Noida.

“Zero period means the government should completely waive off all taxes and charges, including lease rent, electricity charges and water charges. Salaries of the staff should be arranged under the Employees State Insurance Act. Importantly, they should provide us interest-free loans for a year to revive the industry after the lockdown. Without this, the industry will die and fail to continue operations because shutting down business has destroyed fund liquidity,” said Vipin Malhan, the president of NEA.

He said that these 12,000 industrial units under them collectively employ at least five lakh workers directly and at least two lakh more, indirectly.

The NEA has written to the Uttar Pradesh chief minister Yogi Adityanath and top officials of the state industrial department, outlining their demands and concerns.

“The NEA has submitted its representation regarding zero period, in view of Covid-19 pandemic, and interest-free loans to revive the industry. We have sent the representation to the UP government for decisions on these issues. The government is taking measures to ensure workers get salaries during the crisis. Micro industry workers are facing problems now. The decisions on demands will be taken by the state government,” said Anil Kumar, deputy commissioner of the District Industries Centre (DIC).