 "Industry pitches for 'fiscal future road map' with medium term goals")
India Inc on Tuesday made a case for announcing a fiscal future road map with medium term goals and recapitalising of public sector banks during their representatives' meeting with Niti Aayog CEO Amitabh Kant-led empowered group.
During the meeting with the empowered group -- which was constituted on March 29 to suggest measures to ramp up healthcare as well as put the economy back on track -- the Confederation of Indian Industry (CII) called for better coordination between the centre, states and city authorities on lockdown and opening up.
"CII asked the government to announce a fiscal future road map with medium term goals, (and) recapitalise PSBs (Public Sector Banks)," the industry body said in a statement.
The industry body also asked the government to extend the unutilised funds under ECGLS to stressed sectors.
"The Emergency Credit Line Guarantee Scheme (ECGLS) with an allocation of Rs 3 lakh crores liquidity guarantee was provided to the MSME sector.
"CII suggests that the ambit of coverage under ECGLS may be extended to the extent of any unutilised amounts for revival of the stressed sectors, including civil aviation, hospitality and tourism, construction sectors," the industry body said.
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Representatives of Ficci, Federation of Indian Micro and Small & Medium Enterprises (FISME), and the department for promotion of industry and internal trade were also present at the meeting.
According to Niti Aayog's tweet, representatives of the department for promotion of industry and internal trade discussed the need for boosting consumer confidence and freeing up supply chains.
CII also suggested that the government should extend the Merchandise Exports from India Scheme (MEIS) benefits up to December 31 in its present form with a rider that the balance funds would be disbursed later with in a fixed agreeable time-period as and when government's finances improve.
"This will help address the accounting problem of exporters as they can book the receivables under MEIS in the current financial year," it added.
The industry body said a survey of 120 CEOs with operations spread across 20 states and three union territories showed that 77 per cent of them reported adverse impact on revenue as well as profit due to adhoc lockdowns.
The survey was conducted by CII.
"About 61 per cent of the companies reported that adhoc lockdown would impact their revenues up to 50 per cent and 48 per cent of them also reported that their profits would be impacted up to 50 per cent due to the adhoc lockdowns," it said.