Chennai, June 8 (PTI) Tamil Nadu Chief Minister M K
Stalin on Tuesday wrote to his counterparts in 12 states,
urging them to prevail upon the Centre to offer moratorium on
repayment of loans to Micro, Small and Medium Enterprises in
the wake of the lockdowns due to the second COVID-19 wave.
The states should show collective strength on this matter
and the Reserve Bank of India should also be persuaded to
give moratorium, he said.
Expressing happiness that "all our collective efforts",
urging the Centre to purchase vaccines and provide them free
of cost to all states have been "instrumental" in convincing
the union government and Prime Minister Narendra Modi to
eventually reverse the vaccine policy, Stalin said the states
should come together again.
"In this context, I believe all the state governments
should again come together on the pressing issue of asymmetry
in treatment of borrowers, particularly MSME units and small
borrowers, during the first and second waves of COVID-19," he
Stalin wrote to his counterparts in Andhra Pradesh,
Bihar, Chhattisgarh, Delhi, Jharkhand, Kerala, Maharashtra,
Odisha, Punjab, Rajasthan, Telangana and West Bengal, seeking
their support on this issue.
The TN CM said that in April-May 2020 when the Centre
announced the nationwide lockdown, a moratorium was allowed on
repayment of loans for such borrowers.
However, in April-June this year, when lockdowns are
being imposed, based on local conditions by the respective
states, similar relief to borrowers is not provided.
Stalin said he took up this issue with the Centre and
requested moratorium on repayment of loans.
"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 five crore in view of the
lockdowns induced by the second wave of COVID-19."
The absence of such relief measures would force many
businesses to close and lead to widespread economic distress.
"These MSMEs and small businesses are the mainstay of our
economy and employment generation," he said.
Stalin said he was confident that his counterparts would
appreciate the demand and proactively take it up with the
Centre at the appropriate level.
"We need to show our collective strength at this hour of
great need," he said. PTI VGN APR
Disclaimer :- This story has not been edited by Outlook staff and is auto-generated from news agency feeds. Source: PTI
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