Extend benefits of ECLGS 3.0 to retail companies: RAI to Indian govt

ECLGS 3.0 involves extension of credit of upto 40 per cent of total credit outstanding across all lending institutions as on February 29, 2020. The tenor of loans granted under ECLGS 3.0 is six years, including a moratorium period of two years.

The pandemic has been brutal on individuals and businesses alike and it is important for various agencies and bodies to work together to help minimise impact and aid recovery, RAI said in a media release. It sought extension of renewals of existing permits/licenses/NOCs/Permissions including Shops & establishments licenses, trade licenses, Food licenses, Fire NOCs, Signage Licenses etc required for running of the Malls/Shopping Centres/Retail Stores/Restaurants/Pubs for a period of 1 year.

It also sought relaxation of compliance requirements of retailers to pay MSME suppliers in 45 days’ time till March 2022. It urged the Indian government to pay PF contribution of both employer and employee (12 per cent each) till September 2021 for all employees earning less than ₹15,000 p.m.

The RAI urged the central/state governments to mandate electric distribution companies to waive minimum demand charge for the period April 2021 to June 2021. It also sought 100 per cent relief to landlords and malls in payment of property tax for the year 2021-22.

In addition, the government should announce a moratorium on principal and interest for 6 months, and mandate banks to give ad-hoc working capital loans of 30 per cent more than current limits so that critical payments like salaries and wages can be made, RAI said. It also sought interest subvention to reduce the burden of interest.

“While it is imperative to get the last mile workers in retail vaccinated on priority, it is equally important to ensure that the entire cost of the shutdown is not borne by the business alone. We have already seen a lot of work happening within the industry by mall owners and landlords giving rebate to their retail tenants, and the suppliers giving additional credit period or bringing down the cost of their merchandise. We do believe that the state government, the central government, the Reserve Bank of India and the banks also have to chip in to soften the blow of the pandemic to businesses and the economy. Unless the retail businesses are able to get back on their feet and get the consumption going again, it will adversely affect the economy since retail contributes 10 per cent to the nation’s GDP,” RAI CEO Kumar Rajagopalan said.

"The fight against the pandemic is as much about saving livelihoods as it is about saving lives. Retail industry needs support of everyone to be able to once again help get the economy back on its feet. Together, we can fight the impact and win," RAI said.

Fibre2Fashion News Desk (RKS)