Chennai: The alleged delay in the sanctioning of loans under the ‘economic stimulus package’ announced by the Centre and delayed payments to suppliers even by government departments is hitting the micro, small and medium enterprises (MSMEs) hard, say people in the know.
The Ministry of Railways has expressed serious concerns over delayed payments to suppliers, especially the MSMEs, and urged its departments to expedite disbursal of dues.
An order says, “Delayed payments to suppliers, especially MSMEs, have been a matter of grave concern…timely clearance of dues to MSMEs is essential to ensure financial viability of this sector, which is essential for employment generation and economic development of India.”
According to an industry expert, “if payment is yet to happen, even from a Central Ministry, then what can the MSME expect from State government and State government undertaking dues, which are paramount? Where are we heading to? Is there a invisible glass panel between the solution and problem? MSMEs need ventilators badly to save their existence.”
The sector also believes that the new lockdown in Chennai, Thiruvallur, Kancheepuram and Chengalpet districts has affected them badly.
According to K E Raghunathan, former national president of All India Manufacturers Organisation, “We are not against lockdown and we fully understand that it is needed to check the spread of coronavirus. But, imposing of a fresh lockdown after relaxing it has affected many industries. The government should take all possible steps to control the pandemic during the ongoing lockdown and allow us to function without any interruptions after it is lifted.”