Sonia's seventh letter to Modi; seeks succor for MSME

Sonia's seventh letter to Modi; seeks succor for MSME

Congress President Sonia Gandhi on Saturday asked Prime Minister Narendra Modi to announce a special package for revival of the micro-small and medium enterprises sector that was on the brink of economic ruin due to the nation-wide lockdown to combat Covid-19.

“Government has acknowledged MSMEs to be the backbone of our economy. It is time it takes measures to ensure the revival and strengthening of that backbone,” Gandhi said in a letter to Modi, her seventh since the lockdown.

The Congress President suggested a five-pronged approach that was evolved after deliberations by the 11-member high-level committee, chaired by former Prime Minister Manmohan Singh. 

Gandhi demanded that the government announce an Rs one lakh crore ‘MSME Wage Protection’ package for the 11 crore employees in the sector who face an uncertain future. She also sought another Rs one lakh crore credit guarantee to provide immediate liquidity to the sector that contributes to one-third of the country’s GDP and accounts for 50% of exports.

The Congress President said the actions taken by the RBI should be reflected in the actions taken by commercial banks to ensure adequate and timely credit supply to MSMEs. She also wanted the RBI to extend the RBI’s moratorium on payment of loans beyond the stipulated period of three months.

Gandhi also wanted the Prime Minister to address the issue of high collateral security and the limits on margin money that prove to be a hindrance in access to credit.