Chennai: Consortium of Indian Associations (CIA), a forum of over 30 associations, mainly comprising Micro and Small enterprises, has expressed their inability to pay for EMI obligations as moratorium which was granted and ended yesterday.
“The fact remains as per Unlock 4.0 guidance, from today most of the restrictions on functioning of industries have been removed even though Covid cases are touching new peaks every day. The near normalcy is yet to happen and bigger challenges are awaited for enterprises from today,” it said in a statement.
Most of the members who have started their operations in full form, have expressed severe cash flow issues and the funds are required for meeting salary, statutory, supplier payments, monthly fixed commitments, reinvest on marketing and sales activity, machine maintenance and upgrade, arrange for purchase of shortage of materials etc.
More than 80 per cent defaulters are expected to happen in the next three months. K E Raghunathan, convenor of CIA , said that in engineering Industries, it is normal that customers insist on inspection of finished products at the site of manufacture before despatch.
With the free movement across India is yet to happen, there are lots of pending inspection and clearance leading to blockage of funds and also many materials which have been supplied could not be installed and commissioned at site due to which the final payments upto 25 per cent is blocked.