Tamil Nadu Chief Minister M K Stalin on Tuesday wrote to his counterparts in 12 non-BJP ruled states asking them to take up with the Union Government and Reserve Bank of India (RBI) the issue of seeking moratorium for all small borrowers for at least the first two quarters of 2021-2022 due to the Covid-19 lockdown.
Stalin wrote to Chief Ministers of Andhra Pradesh, Bihar, Chhattisgarh, Delhi, Jharkhand, Kerala, Maharashtra, Odisha, Punjab, Rajasthan, Telangana, and West Bengal.
In the letter, Stalin told his counterparts that he was happy that “our collective efforts” have ensured reversal of the earlier policy vis-à-vis Covid-19 vaccination in the country.
“….Government of India announced departure from the earlier policy and shifted the responsibility to procure and administer vaccines to people in the age group of 18 to 45 to the State Governments. Many amongst us pointed out the fact that the most appropriate monopsonic purchaser would be the Government of India,” he wrote in the letter.
Noting that a moratorium was offered on repayment of loans for small borrowers during the lockdown in 2020, Stalin said relief to borrowers is not being provided for this year.
“I request all the States to write to both the Union Finance Minister and the Governor, Reserve Bank of India to prevail on them to offer moratorium on repayment of loans for at least the first two quarters of 2021-2022 to all small borrowers with outstanding up to Rs.5 crore in view of the lockdowns induced by the second wave of covid-19,” Stalin said.
The absence of such relief measures would force many businesses to close and would lead to widespread economic distress. These MSMEs and small businesses are the mainstay of our economy and employment generation, he added.
The Chief Minister said he has already taken up this issue with the Government of India with a request to provide a moratorium on repayment of loans.
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