90 per cent of MSMEs not able to pay salaries in Uttar Pradesh

MEERUT:: Almost 90 percent of Micro, Small and Medium Enterprises (MSMEs) have shown their helplessness in Uttar Pradesh in giving salaries to their employees, according to an online survey conducted by Indian Industries Association (IIA). The IIA has also demanded a bailout package for survival of MSMEs in the state.

IIA is an umbrella organisation of MSMEs, having more than 60 chapters across the country especially in the state.

IIA’s president Pankaj Gupta said that need of an online survey was felt after discussions with the owners of many units, who had been experiencing multiple problems during the lockdown.

“Units are closed and paying dues of electricity bills, bank loans and other expenses including salaries of employees were their major issues”, he added.

Gupta said a questionnaire was prepared to seek views of unit owners through the online survey, which was carried out almost in all chapters.

The unit owners were asked whether they were in a position to pay salaries for the lockdown period of April and 89.34 percent replied in negative against 10.66 percent responded affirmative. However, 64.75 percent were ready to pay salaries for March and 35.25 percent even responded no for the same month. In another question they were asked whether it was justified for the government to ask the private sector to pay full salaries for the period of lockdown and 90.16 percent of them replied in negative against 9.84 percent who supported it.

IIA president said that 75.41 percent denied that banks were supporting them for their working capital needs and 81.15 percent also responded in negative to a question about receiving sufficient support from the government to face the impact of the lockdown.

Members were also asked whether they were prepared to pay wages to their employees for the lockdown period even without the government’s direction, and 45.02 percent replied in affirmative against denial by 54.92 percent.

Gupta said that he had sent letters to union finance minister Nirmala Sitharaman, state governments and other relevant departments regarding multiple problems of MSMEs.

“We would demand for a bailout package for MSMEs which is backbone of the economy”, he added. Expressing his concern for MSME’s future Association’s divisional chairman Anurag Agarwal said “MSMEs are going through worst condition in prevailing situation. Production is closed and we have to pay power bills, arrange for capital money, salaries and EMIs if bank loans. On the other hand, we are not receiving our dues from different government department against supply of material”.

Association’s chairman of Meerut Chapter Nipun Jain said, “How could we give salaries when struggling for our survival.” Government has announced a few directives for banks for MSMEs but situation is different on ground therefore MSMEs are bound to suffer, he added. Ravi Allen, chairman of Meerut Industrial Development Forum (MIDFO) insisted that state and union government should come forward for providing immediate relief to MSMEs to protect them