Ashok Leyland seeks govt support for MSMEs post lockdown to kickstart economy

Micro, small and medium enterprises, which form the backbone of Indian industry, will need to be supported by the government to kick-start the economy after lockdown is lifted, according to Ashok Leyland Managing Director and CEO Vipin Sondhi.

Measures such as easy access to working capital and liquidity through banks and NBFC's, providing interest free and collateral free loans; introduction of an incentive for MSME's to help them pay salaries and wages to their employees in these times need to be considered by the government.

It would be crucial to kick-start economic activity after this period of disruption. MSME's are the backbone of Indian industry and form the key element of the product supply chain - be it agri-processing, textiles, or auto-ancillaries," Sondhi said in a statement.

Stating that MSMEs will need support from the government, he suggested measures to be considered which include "easy access to working capital and liquidity, through banks and NBFC's, providing interest free and collateral free loans; introduction of an incentive for MSME's to help them pay salaries and wages to their employees in these times".

Sondhi also said the NPA recognition period must be extended for MSMEs from 90 days to 360 days and ensure that all pending payments to industry/MSME's are cleared immediately by the government departments and PSUs.

Lastly, he said,"MSMEs can be incentivised to produce medical supplies, with a buy back arrangement from the government.