The Covid-19 pandemic has caused havoc around the world and governments have responded to the threat with appropriate health measures and lockdowns. In our state too, we can see steps being taken by the government to improve health infrastructure for which crores of rupees has been allocated. On the other hand, this new reality has been compounded by the severe economic toll from the outbreak. Naga entrepreneurs – who are mostly first-generation businesspersons were not ready for such an unprecedented event. Many businesses have closed, some are barely managing, and many are on the verge of closing. The employees attached to these businesses also stand to lose their jobs.
Onlybusiness activities and Industries can bring about strong economy which can usher a new era of prosperity for the Nagas. As the state government can no longer provide jobs to thousands of youths passing out from schools, colleges and training institutions every year, employment can only be created by existing and upcoming enterprises in the state. A vibrant local economy will also ensure that the state government earns more revenue through taxes which can help fund public works & services while building and maintaining the infrastructure.
Keeping these in mind, BAN had written to the Chief Minister on the plight of Naga entrepreneurs. In positive response to BANs predicament, A consultative meeting on 8th Sept. 2021 was called by Commissioner & Secretary, Department of industries and Commerce, followed by another meeting on 22nd September 2021 at Nagaland Industrial Development Corporation (NIDC), Dimapur. During these meetings BAN took up matters of importance of the business community like State Industrial Policy, streamlining of PMEGP loan scheme, illegal occupation of Industrial estate by CRPF at Dimapur, Covid-19 stimulus package for Naga entrepreneurs and so on.
The Central government has announced stimulus package to the tune of lakhs of crores since the pandemic started, most of which is in the form of government credit guarantees. These guarantees are in the nature of promises that the government will provide a back-stop if creditors default on loans that they take from banks. The ground reality in Nagaland is that entrepreneurs are struggling to get loans from banks in the first place. This problem is furtheraggravated by the non-implementation of SARFAESI act.
In such a scenario, it becomes imperative that the state government introduces economic relief measures for affected local entrepreneurs. One way of doing that is by putting money into the hands of the entrepreneurs and creating employment through the enterprises. Some of the immediate measures that needs Government attention has been highlighted and BAN is open to more deliberation with the Government to fine tune these suggested measures:
- Waiver of Electricity bill and Rent in Government property for 12 months to Industrial consumers, shops, and offices. (This can be linked to Power Subsidy of Nagaland Industrial Policy)
- Employment Wage subsidy: This can be linked to Manpower subsidy of Nagaland Industrial Policy 2004 which has not been utilized for the last more than 12 years. A flat rate of 50% can be granted.
- SGST reimbursement for 1 year linked to Industrial Policy 2004
- Covid-19 business loan
– Loan can be from NIDC or under NBFC Co-lending scheme.
– Loan amount can be between Rs. 2 Lakh to Rs. 10 Lakh.
– 6 Months interest should be reimbursed by State Government (Linked to Industrial Policy)
– Loan can be repayable in 36 months.
5. COVID-19 microfinance:
– Assistance up toRs 1 Lakh can be extended.
– This can be covered under CM corpus fund.
6. Sustainable Enterprise fund
How can the employment be generated if the Employer is ended?Even if Business had to run at a profit of 25%post COVID19, it will take nearly 24 months to set off the losses incurred in the last 18 plus months and for which this fund is required to sustain the business.
– NIDC or Cooperative bank can extend this loan
– This can be 50% grant, 50% payable.
– 50% grant can come from COVID-19 cess.
– Loan can be repayable in 24 months.
7. COVID-19 restriction Livelihood scheme.
– Provide income support as compensation for the livelihood that was denied through lockdown.
– Funds can come from COVID-19 cess.
– This scheme can be provided to those sectors that had been hit the most.
– Assistance can be to the tune of 3% of previous turnover or as per the SGST filed.
8. Credit Guarantee Scheme
– Each bank should be given a target.
– 3% Interest to be supported by State Govt (linked to Industrial Policy).
9. Government Department should follow e-Tendering process for all purchases and contracts giving 15% price preference and exemption of earnest money to local entrepreneurs as per the provision under Nagaland Industrial policy 2004.
