<p>Hailing the Reserve Bank of India's move to cut the repo rate, CRR and reverse repo and directing banks to keep the moratorium on payment of EMIs for three months as timely measures that will help in the economic recovery, the small industries body Karnataka Small Scale Industries Association (Kassia) has urged the state government to announce similar measures.<br /><br />"We would like to request the state government to provide similar relief for payments of fixed charges, electricity and water bills by the SMEs for the next three months as it will be critical for them to pick themselves up," R Raju, President, Kassia said on Friday.</p>.<p><strong>Read — <a href="https://www.deccanherald.com/business/economy-business/coronavirus-rbi-makes-future-loans-cheaper-chalks-out-strategy-to-maintain-liquidity-818222.html" target="_blank">Coronavirus: RBI makes future loans cheaper, chalks out strategy to maintain liquidity</a></strong></p>.<p>The government must also consider subsidising the salaries of workers of these units in the coming months besides permitting the extension of working hours temporarily to recoup the lost man-days. These measures will be essential in order to meet the impending challenges, Raju said.<br /><br />The small scale industries have also urged the RBI to waive off 3 months interest on all loans including working capital of SMEs and increase working capital by 25%.<br /><br />The government should come out with an economic package to deal with the current crisis, especially for the MSME sector who contribute 29% of India's GDP and employ 11.4 crore people, said Bangalore Chamber of Industry and Commerce (BCIC). </p>.<p><strong>Also read — <a href="https://www.deccanherald.com/business/business-news/slashed-interest-rate-needs-quick-transmission-finance-minister-nirmala-sitharaman-818171.html" target="_blank">Slashed interest rate needs quick transmission: FM Nirmala Sitharaman</a></strong></p>.<p>The industry body has sought deferment of payment of total GST amount collected by industries and business from February 20 to first quarter of 2020 and can be paid later from September 2020 to March 2021 in FY21 as this would improve the liquidity of the business. It has also sought a reduction of the tax rate for senior citizens and other middle and lower income groups. Providing a one-time benefit for small-time investors who lost significantly in the recent stock market crash by allowing carry forward and set off the losses, the BCIC President Devesh Agarwal said in a statement.</p>
<p>Hailing the Reserve Bank of India's move to cut the repo rate, CRR and reverse repo and directing banks to keep the moratorium on payment of EMIs for three months as timely measures that will help in the economic recovery, the small industries body Karnataka Small Scale Industries Association (Kassia) has urged the state government to announce similar measures.<br /><br />"We would like to request the state government to provide similar relief for payments of fixed charges, electricity and water bills by the SMEs for the next three months as it will be critical for them to pick themselves up," R Raju, President, Kassia said on Friday.</p>.<p><strong>Read — <a href="https://www.deccanherald.com/business/economy-business/coronavirus-rbi-makes-future-loans-cheaper-chalks-out-strategy-to-maintain-liquidity-818222.html" target="_blank">Coronavirus: RBI makes future loans cheaper, chalks out strategy to maintain liquidity</a></strong></p>.<p>The government must also consider subsidising the salaries of workers of these units in the coming months besides permitting the extension of working hours temporarily to recoup the lost man-days. These measures will be essential in order to meet the impending challenges, Raju said.<br /><br />The small scale industries have also urged the RBI to waive off 3 months interest on all loans including working capital of SMEs and increase working capital by 25%.<br /><br />The government should come out with an economic package to deal with the current crisis, especially for the MSME sector who contribute 29% of India's GDP and employ 11.4 crore people, said Bangalore Chamber of Industry and Commerce (BCIC). </p>.<p><strong>Also read — <a href="https://www.deccanherald.com/business/business-news/slashed-interest-rate-needs-quick-transmission-finance-minister-nirmala-sitharaman-818171.html" target="_blank">Slashed interest rate needs quick transmission: FM Nirmala Sitharaman</a></strong></p>.<p>The industry body has sought deferment of payment of total GST amount collected by industries and business from February 20 to first quarter of 2020 and can be paid later from September 2020 to March 2021 in FY21 as this would improve the liquidity of the business. It has also sought a reduction of the tax rate for senior citizens and other middle and lower income groups. Providing a one-time benefit for small-time investors who lost significantly in the recent stock market crash by allowing carry forward and set off the losses, the BCIC President Devesh Agarwal said in a statement.</p>