This refers to “Coronavirus outbreak: Govt mulls suspending IBC process for 6 months” (March 25). The government’s announcement for raising the threshold of the default amount from Rs 1 lakh to Rs 1 crore for initiating insolvency proceedings along with certain relaxations in statutory compliances indicates its intention to limit the economic fallout of the COVID-19 pandemic.
With the 21 days complete lockdown announced by the prime minister, the outbreak will hopefully subside but the economic impact will be far more damaging and lasting. The damage is feared to be quite severe on our economy that still hasn’t come out of its low-growth trajectory.
The government needs to come up with a more comprehensive economic package quickly to contain the pandemic fallout and put the economy back on track. The worst sufferers in the whole process are small and medium enterprises. They need preferential treatment and the government’s large heartedness to survive. Hopefully, the government is mindful of these realities and would come out with all guns blazing to protect and revive the economy sooner than later.
Sanjeev Kr Singh, Jabalpur
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