Despite the measures announced by the Union Finance Minister and the Reserve Bank of India, the MSME (micro, small and medium enterprise) sector is clueless about how to pay salaries, raise funds in view of the lockdown.
Many MSMEs expect a few more announcements to relieve their woes as they account for about 25 per cent of the commercial credit exposure of banks, according to March 2019 numbers.
“The immediate challenge of MSMEs will be to pay their statutory dues, wages and pressing creditors in addition to the bank dues, says G Karthikeyan, a Coimbatore-based Chartered Accountant.
MSMEs have urged the government to support them in paying salaries by giving special soft loans which can be paid back in equal installments starting September.
This story is from the March 31, 2020 edition of The Hindu Business Line.
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This story is from the March 31, 2020 edition of The Hindu Business Line.
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