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Getting liquidity into system focus of stimulus: FICCI
14 May '20
2 min read
Pic: Shutterstock
The greatest takeaway from yesterday’s stimulus package announced by Finance Minister Nirmala Sitharaman was the focus on getting liquidity flowing into the system, according to the Federation of Indian Chambers of Commerce and Industry (FICCI), which said, there is a need to give equal focus as well on generating consumption demand and propping up investments.
“We hope that in the next set of announcements, these areas will be taken up in a comprehensive manner," said FICCI president Sangita Reddy in a press release.
FICCI is hopeful of seeing a greater thrust on some of the most battered segments of industry, including tourism, hospitality, aviation and healthcare in future announcements. It has requested that a minimum amount of ₹20,000 crore be allotted for these sectors as they have seen maximum dip in demand and will also take much longer to recover from the set-back seen.
On support extended on payment of statutory dues, the three-months extension given to the earlier announced measure of government contributing both the employer and employee share in Provident Fund within certain limits is a noteworthy move, FICCI said.
FICCI members have reported that this support was timely, but enhancing the wage limits set under this relief measures may be explored as minimum wages vary from state to state, the press release said.
On the power sector, while the infusion of liquidity to the tune of ₹90,000 crore in electricity distribution companies against their receivables by the Power Finance Corporation and the Rural Electrification Corporation will help these companies discharge their payments to power generation companies, a longer-term approach to make the sector sustainable is required, FICCI said.
The government also needs to plan for more support for the migrant workers and the more vulnerable sections of society, the federation added.
“We hope that in the next set of announcements, these areas will be taken up in a comprehensive manner," said FICCI president Sangita Reddy in a press release.
FICCI is hopeful of seeing a greater thrust on some of the most battered segments of industry, including tourism, hospitality, aviation and healthcare in future announcements. It has requested that a minimum amount of ₹20,000 crore be allotted for these sectors as they have seen maximum dip in demand and will also take much longer to recover from the set-back seen.
On support extended on payment of statutory dues, the three-months extension given to the earlier announced measure of government contributing both the employer and employee share in Provident Fund within certain limits is a noteworthy move, FICCI said.
FICCI members have reported that this support was timely, but enhancing the wage limits set under this relief measures may be explored as minimum wages vary from state to state, the press release said.
On the power sector, while the infusion of liquidity to the tune of ₹90,000 crore in electricity distribution companies against their receivables by the Power Finance Corporation and the Rural Electrification Corporation will help these companies discharge their payments to power generation companies, a longer-term approach to make the sector sustainable is required, FICCI said.
The government also needs to plan for more support for the migrant workers and the more vulnerable sections of society, the federation added.
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