CICU’s President Suggests Government Give Relief to Industries amid Coronavirus Crisis

In the wake of the spread of Coronavirus across India, companies, and industries are facing terrible losses as the economy is facing a downturn. Meanwhile, businessmen are now seeking a helping hand from the government to get compensated for their losses due to the nationwide lockdown.

In this line, Ludhiana’s renowned businessman has come forward with suggestions to the government as to how it can help the businessmen cope up with the losses. One of Punjab’s biggest business associations Chamber of Industrial and Commercial Undertaking (CICU) has scheme out solutions to the problems of the industry keeping in mind that it will not put a huge burden on the government.

Upkar Singh Ahuja, President of CICU, said, “The current situation of the manufacturing and service sector is extremely fragile and huge monetary assistance is required to save the industry, especially the micro small and medium enterprises (MSME). Even after knowing that we are passing through the worst of times, the government has directed industrialists to pay wages and salary to their employees while on the other hand no relaxations have been given to us.”

He further added that the industries have to bear the burden of bank interest, insurance costs, and demurrage by shipping lines, and loss of profit due to loss of business during the lockdown, annual maintenance charges, high cost of transportation, fixed cost of electricity and many more types of charges along with the payment to their employees. According to Ahuja, the industry is in trouble due to low liquidity and some large companies have even refused to make payments.

“Moreover, the realization of export payments is slow as most export destinations like Europe, America, Russia, etc. are partly closed and even government departments are not releasing our payments,” he further added.

Addressing to the government and the concerned authority, Ahuja said, “In the wake of all these factors we have sent a representation to Prime Minister Narendra Modi finance minister, MSME minister and others in which we have requested them to pay 10% lump-sum compensation to the industry based on the turnover as per GST return of the businesses. It’s only then that the industry will be able to survive, otherwise, most of the units will be staring at huge losses and further, it will lead to mass NPAs and collapse of the economy.”