Pune Inc fears serious disruption in cash flows, fresh orders: MCCIA
Based on the results, the MCCIA said, most Micro, Small and Medium Enterprises (MSMEs) have accounted for salaries and wages to be paid until the lockdown ending on April 14. They were uncertain about the same thereafter
A serious disruption in cash flows and fear of future business are the top two concerns for more than 95 per cent of the 398 companies surveyed by the Mahratta Chamber of Commerce, Industries and Agriculture (MCCIA), director-general Prashant Girbane said on Friday.
Addressing a press conference over the internet, Girbane said: “Out of the 398 companies that we surveyed ( 231 manufacturing companies and 166 services companies), we understand that cash flow and fear of future business are the top two concerns for over 95 per cent of the companies. The other major concerns were lack of transport and inventory management,” he said.
While the 45 percent of the respondents were confident about not cutting the salaries of their employees, another 40 per cent were uncertain about it, he said.
The press conference was called to share the details of a survey conducted in about 400 companies during the lockdown.
Based on the results, the MCCIA said, most Micro, Small and Medium Enterprises (MSMEs) have accounted for salaries and wages to be paid until the lockdown ending on April 14. They were uncertain about the same thereafter.
The survey revealed that while 64 per cent of respondents were worried about the impending reduction in orders from their costumers and another 23 per cent were already feeling the pricing pressure from their costumers; 77 per cent of respondents believed that their trade receivables were under high risk.
Girbane said MCCIA plans to write to the government for waiver of electricity duty and fixed charges by MSEDCL for MSMEs, with the industries stopping work with effect from March 21.
“It is also recommended that the same should be waived off for next three months and that MSEDCL should also extend the payment date of the electricity bills by 15 days during next three months. Similarly, MIDC’s fixed water charges should be waived off or the demand charges collected through monthly water bills. Further, all other service charges for the next 3 months should be waived off and bills should be raised for actual consumption of the water by the MSMEs,” the MCCIA said in a statement.
While making a note of the waiver of property tax for MSMEs by the local body for the next three months, the MCCIA has written to the government seeking an increase in cash credit limit with the banks by 20% and release of MSME dues from PSUs.
“It is understood the PSUs owe about Rs One Lakh Crores to the MSMEs towards purchase of goods and services from them. This amount needs to be release on priority,” said Girbane.