Most industry associations and exporters expressed relief from the general easing announced by the government on Friday, but reiterated their call to the government to prepare an economic stimulus plan to support problematic segments of the economy.
The Ministry of the Interior announced that after the 3. On 1 May, when the national blockade was imposed to stop the spread of Kovid-19, the free movement of persons was to be restricted only at night (from 7 p.m. to 7 a.m.), while private offices could employ 33 percent of the workers, even in urban areas, most of which are classified as red zones.
The relaxation of many industrial activities, including in urban areas such as Special Economic Zones, Industrial Zones and limited industrial cantons in the Red Zones, is exactly what the Confederation of Indian Industries (CII) has called for, and we are particularly pleased with it, according to CII Director General Chandrajit Banerjee.
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The Government has also authorised the production of computer equipment, jute and packaging materials in the Red Zones, as well as construction work with appropriate restrictions.
Although, according to the Centre, the State and local authorities should be allowed to carry out detente measures, they are strictly forbidden to carry out other detente measures. It is crucial to give authorities at a lower level the power to use their discretion to provide concrete assistance in areas where it is freely available, Banerjee added.
The sectors also supported the Government’s proposal to allow passenger and vehicle traffic with restrictions on the authorised sectors. In the orange-green zone buses are allowed to run for 50%. This will partially reduce the pressure on companies that have struggled to relocate workers to and from industrial plants, said a senior official of the Federation of Indian Chambers of Commerce (Ficci).
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However, demand for the economic stimulus package continued to grow. Although a regular evaluation of the areas and companies is necessary to improve the situation of start-ups, it is also time for the government to propose a financial package, especially for micro, small and medium enterprises and for the industry in general, said Sangita Reddy, president of Ficci.
It was an echo of the others. Companies in various sectors, from the hotel industry to construction, logistics, industry and trade, are stuck in a difficult financial situation. Fixed costs such as salaries, electricity, rent, communications are difficult to pay, even though operating losses are inevitable. Such an unfortunate state of affairs requires strong financial incentives, even if it is necessary to monetize the budget deficit by direct loans from RBI to the government, Secretary General Ashoshama Deepak Sood said.
Assam also appealed to the government to provide, as part of possible incentives, a reduction in tax rates on goods and services, a state guarantee for banks to provide loans to weaker companies, exemption from all state fees, and a restructuring of the loans.