Noida industrialists, entrepreneurs seek relief package amid lockdown

Noida-based entrepreneurs and industrialists have demanded a relief package from the Uttar Pradesh (UP) government and the Centre, amid the ongoing 21-day nationwide

Noida-based entrepreneurs and industrialists have demanded a relief package from the Uttar Pradesh (UP) government and the Centre, amid the ongoing 21-day nationwide lockdown due to the outbreak of the coronavirus disease (Covid-19) pandemic.

They said although their operations are shut, they are required to pay the salaries of their staff members as per the government order. Noida Entrepreneurs Association (NEA), which has at least 10,000 industrial unit owners as its members, has written to the UP government and the Centre about their plight. These 10,000 industrial units collectively employ at least 5 lakh workers directly. Further, at least 2 lakh more people get indirect employment from these industrial units, said NEA.

Small, micro, medium and large-scale industrial units manufacture a variety of products, such as electronic goods, electrical equipment, automobile parts, garments, etc. They said that they were already suffering due to the economic slowdown and now the shutdown of units amid the nationwide lockdown has virtually brought their businesses to a standstill.

“The biggest worry is that the government has directed us to pay the salaries of all employees during the phase when units are shut and workers are not reporting for work. We have happily paid the salaries to our employees but the problem is that the government has not provided us with a relief package yet. They should not charge any interest on loan installments for at least three months, as the Reserve Bank of India has put a moratorium on all loan payments. If there is no work happening, then why we should pay interest on our businesses or other loans?” asked Vipin Malhan, president of NEA.

The association has written letters to the UP chief minister and the ministry of finance for a relief package amid the existing scenario when the industry owners have completely shut down their business operations and are staying at home.

They said that the Noida Authority has refused to waive off water or sewer charges and there has been no relief from rental charges for their industrial units and other taxes during this period.

“The government must take into consideration our plight because the government should stop taking electricity bills during the period when operations have been shut down. Other taxes from all departments should also be put on hold during this crisis period,” said Sudhir Shrivastava, spokesperson of NEA.

The association also demanded that commercial and transport taxes for their vehicles should also be exempted.

“The government should provide business loans at 6% interest rate in order to give a boost to industrial units on the lines of reliefs given to other sections. We employ at least 5-7 lakh people in Noida. If the government will encourage our business instead of imposing unwanted taxes then it will benefit all our employees and the local economy,” said Shrivastava.