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Bengal Inc lauds special package to revive economy

May 14, 2020, 01:43 IST
PTI
Kolkata, May 13 () The industry bodies and leadingbusinessmen in West Bengal on Wednesday lauded the financialpackage and policy interventions announced by the Centre, torevive the country's economy, which has been severely hit dueto the coronavirus-triggered lockdown.

The turnover-based definition of MSMEs has addressed along pending demand and extended the benefits to a largenumber of companies, city-based Indian Chamber of Commercesaid in a statement.

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Finance Minister Nirmala Sitharaman announced Rs 3lakh crore of collateral-free loans for small businesses, acut in the tax rate for non-salary payments and measures toprovide liquidity to non-banking companies to help them tideover the disruptions caused by the lockdown.

"The Rs 3 lakh crore government guaranteed loans tothe liquidity-starved MSMEs would go a long way in stabilisingand strengthening the sector," the industry body said.

The power distribution companies, which are facingunprecedented cash flow problem, will be benefited from theemergency liquidity injection to the tune of Rs 90,000 crore,it said.

City-based Merchants' Chamber of Commerce presidentVivek Gupta also hailed the Centre for new defenition ofMSMEs.

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"Hope MSMEs will be fully able to extract benefitsfrom the implementing institutions," he said.

Bandhan Bank MD and CEO, C S Ghosh, said, "Thespecial liquidity and partial credit guarantee schemes forNBFCs, HFCs and MFIs will ultimately benefit the endconsumers, many of who are in the rural and semi-urban areas."

Praising the stimulus package, Village FinancialServices MD and CEO Kuldip Maity said the microfinanceinstitutions have been facing a tough time due to significantcash flow issues.

"The liquidity infusion measures will help combat therising stress in the sector and eventually, cater to the needyborrowers who are in search of emergency loans to resume theirbusiness operations," he said.

Welcoming the package unveiled by the Centre,Engineering Export Promotion Council of India Chairman RaviSehgal said, "Infusion of liquidity through debt and evenequity into the MSMEs is a major step forward."

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Real estate developers on Wednesday said thegovernment's decision to extend the timeline of completion ofprojects by six months will provide much needed relief to theindustry but sought more measures to improve liquidity, reduceinput cost and boost housing demand.

Credai West Bengal President Sushil Mohta appreciatedthe declaration of Covid-19 as "Force Majure" that will givethe "real estate sector some breather".

"The sector is very important for restarting theeconomic activities. There is much more to be done. We areexpecting a reduction in interest rates," Mohta said. BSMBDC BDC

(This story has not been edited by www.businessinsider.in and is auto–generated from a syndicated feed we subscribe to.)
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