Sonia Gandhi writes to PM, calls for wage protection package, credit guarantee fund for MSMEs

New Delhi,  (thestates.news)  Expressing concern on the devastating impact of the ongoing lockdown on the Micro and Small and Medium industries, Congress president Sonia Gandhi on Saturday called upon PM Narendra Modi to announce a Rs 1 lakh crore MSME Wage Protection package to shore up the jobs in the sector and credit guarantee fund of Rs 1 lakh crore to provide immediate liquidity to the sector.
In a letter to the PM, her sixth letter to Mr Modi since the enforcement of the lockdown, Ms Gandhi also called for a 24×7 helpline in the Ministry to provide guidance and to assist MSMEs during this period.
Expressing concern that due to the lockdown, the MSMEs stand on the verge of economic ruin, she said, ‘The MSMEs contribute close to one third of the nations GDP and account for almost 50 per cent of our exports. They employ over 11 crore people. At this moment, without appropriate support, more than 6.3 crore MSMEs stand on the verge of economic ruin.’
‘Nearly all MSMEs have lost sales orders, seen a complete cessation of their work, and have had their revenue negatively impacted by the lockdown. Most worrying of all, the 11 crore employees mentioned in the preceding paragraph are at risk of losing their jobs as MSMEs struggle to pay their wages and salaries,’Ms Gandhi said and called on the Government to introduce a series of measures to meet this crisis.
Giving a series of suggestions to revive the sector, the Congress leader said, ‘First, announce a Rs 1 lakh crore MSME Wage Protection package. This would go a long way in shoring up these jobs, boosting morale as well as greatly alleviating the predicted economic spiral.
Second, establish and deploy a credit guarantee fund of Rs.1 lakh crore. This is necessary to provide immediate liquidity to the sector and ensure adequate capital is available to MSMEs at a time when they need it the most. ‘
Stressing the need for RBI to ensure that commercial banks provide adequate, easy and timely credit supply to MSMEs, she said, ‘actions taken by RBI must get reflected in actions by commercial banks to ensure adequate, easy and timely credit supply to MSMEs. Furthermore, any monetary action at the RBI’s end must be supported by sound fiscal support from the Government.’
She also called for a 24×7 helpline in the Ministry to provide guidance and to assist MSMEs during this period.
‘These measures need to be supported by an expansion and extension of the RBI’s moratorium on payment of loans for MSME beyond the stipulated period of 3 months. The Government should also explore a waiver/reduction of taxes for MSMEs and other sector specific measures,’ Ms Gandhi said.

‘Government has acknowledged MSMEs to be the backbone of our economy. It is time it takes measures to ensure the revival and strengthening of that backbone. This is a case where timely and decisive action can make all the difference,’the Congress president said.(uni)