“MSME’s Should Be Granted Interest Free Advance,” Says Ex NALCO CMD Tapan Chand

Bhubaneswar – Former CMD of NALCO and industry expert Dr. Tapan Kumar Chand stressed on providing interest free advance to MSMEs to survive the industry crisis amid lockdown.

Discussing on the impact of COVID19 on economy and industries, Dr. Chand spoke to Odishalinks at length on the issue.

Q – How do you assess the damage on industries in general due to the lockdown initial for COVID19?

A – The impact of COVID19 will be minimal on large industries and mines, but its impact on MSME is disastrous. Since more than 90 per cent of MSMEs are micro industries, these are inherently weak and the lockdown impact will be quite damaging. So these units need handholding to restore.

Q – Do you see any effect on the agricultural sector?

A – Agriculture contributes 17 per cent of our GDP and there may not be much impact as the IMD has predicted normal monsoon this year. Also, agricultural activities have started on time despite COVID19 fears.

Q – What will be your suggestion for the revival of MSMEs?

A – A cashless model under which inputs will be given by mother plant and finished product will be taken back for marketing through appropriate binding agreements. This will be a win-win situation for both. Realisation of mother plant will increase and MSMEs will get assured return.

Q – But there are labourers who are without work and no money. How will MSMEs tackle this?

A – MSMEs may be given interest free advance to be recovered in installment for payment of wages to worker for lockout period and upto six month after lock out. This will bring back the labour to work and increase their purchasing power and consequent demand in market.

Q – Finally, how do you see tourism and entertainment industry?

A – In service areas of trade, entertainment and tourism, the sectors may face difficulty for sometime and their problems need study for mitigation measures.