ITANAGAR, Apr 28: Members of the Arunachal Chamber of Commerce and Industries (ACCI) on Monday met Deputy Chief Minister Chowna Mein and sought “working capital gap funding for business enterprises” as relief amid the nationwide Covid-19 lockdown.
The state’s apex body of traders suggested a model of 10:40:50 proportion for the financial package, with no processing fees or pre-payment penalties, “wherein 10 percent will be promoter’s contribution, 40 percent will be state government’s gap funding, and 50 percent will be loan component.”
It said that the government’s contribution has to be “placed upfront to the bank for swift implementation,” and that the bank should make disbursement a priority on the fulfillment of the laid down criteria.
“The maximum working capital loan shall be based on three times of each business’ 2019 average monthly payroll costs, including benefits, plus the three month rents of the existing unit’s properties.
The repayment period will be of 24 months, which shall be exclusive of six months moratorium on interest and EMI on account of unprecedented situation,” it said.
The ACCI also suggested that the state government stand as “sovereign guarantor” for the proposed loan.
Informing that there are 14,000 GST registrations in the state, of which approximately 6000 are in the capital complex and a majority of them are work contractors, the ACCI also laid down criteria for traders to avail the financial package. These would include “traders dealing with essential services, CNF, stockists, distributors and wholesalers of the same,” it said.
Medicine retailers and pharmacies shall be excluded, it said.
Penal provisions were also suggested to the DCM.
“It will not only provide much-needed interim support to business enterprises in terms of cash flow and liquidity on account of Covid-19 but also encourage the existing business enterprises and future aspirants to avail trading licence and GST registration, which in the long run will increase the much-needed revenue for the state,” it said.
