To save the retail industry and commerce of India, RAI has suggested that banks must be mandated to extend the moratorium to 270 days for payment of installments & interest of term loans, short-term loans, corporate loans, securitised loans, bonds, mortgages, debentures, general purpose loans effective from March 15, 2020 to December 31, 2020.

It has also sought moratorium of 270 days for all interest payments of cash credit lines up to December 31, 2020. The moratorium should include non-fund sources such as bill discounting, letters of credit, RAI said in a letter to the government.

Banks must mandatorily provide 25 per cent additional working capital credit lines, to tide over the shortfall due to no-revenues. This is critical for companies to pay their salaries and wages on time, the letter said.

RAI has also requested that additional working capital credit lines be made available till December 31, 2020. And that a provision should be made to pay back additional working capital credit lines in 3 installments between January 1, 2021 and March 31, 2021.

"RBI should recommend SEBI to relax share pricing norms for QIP and preferential allotment to help companies raise capital. Significant relaxation is also required for rights issue," the RAI letter said.

Seeking interest subsidy and default relief, RAI said interest rates on all loans to retail industry to be subsidised/reduced by 400 basis point from March 15, 2020 to December 31, 2020. It has also urged that RBI should relax NPA reporting guidelines till March 31, 2021.

In terms of relaxation in statutory payments/accounts, RAI has requested the government to increase the period by 90 days for depositing all statutory dues like Income Tax, Advance Tax, GST, ESIC, PF etc for payments due up to July 31, 2020. It has also sought extension of the mandatory reporting/statutory filing days by 60 days to July 31, 2020 for financial accounts for year 2019-20.

"Industry needs fiscal support to ensure no job losses in the retail trade. Towards this, we request a 4 month (March 20 to June 20) job support subsidy at 50 per cent of the minimum wages as cash support to encourage retailers to continue employment of staff during the extended lock down and recovery period after the lock down is lifted," the letter urged.

Ameet Panchal, MD, Ethnicity, and a RAI member said the association hopes that the Government of India will give adequate consideration to the concerns in order to overcome probable adversities due to corona outbreak which may cause unprecedented hardship to the retail industry.

Fibre2Fashion News Desk (RKS)