Open letter to the Chief Minister of Nagaland

19th June, 2021

To
Shri. Neiphiu Rio
Hon’ble Chief Minister
Govt of Nagaland

Dear Chief Minister,

First of all, the Business Association of Nagas (BAN) would like to appreciate the steps taken by your government to prevent the spread of Covid-19 virus. Most Nagas have not seen such an attack on humanity by an unseen enemy. Nagaland, to some extent, as compared to other states has been able to contain the spread and the credit goes to the government for steps like lockdowns and other forms of restrictions.

Having said that, your government has to ponder on the plight of businesses, especially businesses run by Nagas – who are mostly first generation businessmen. Since the first wave of the pandemic started last year, keeping in mind the gravity of the situation, we have been fully cooperating with whatever restrictions that have been imposed upon us.

As the situation seemed to be getting better, the second wave has hit us. There are talks going on in the medical community that a third wave is due soon. Many businesses are barely surviving – we have to pay rent, salaries and repay our loan EMIs.  As businesses are generating very less profits to sustain themselves, we fear these tsunami of waves created by the pandemic will wash away the businesses we have toiled many years to build.

The business community helps in revenue generation for the state through GST. As state government cannot provide employment to everyone, the business community is a major employer for people who can’t find government jobs. Therefore, a stable business community is an asset for any state.

Sir, we understand your hands are full with problems of all sorts. But give a thought for the Naga business community during these difficult times. Even with an assured job and salary, government employees are unhappy when even a day’s salary is deducted for some cause. On the other hand, we have been keeping our businesses shut for weeks and months during lockdowns obeying the restrictions set by the government.

Some carefully thought out policies and measures may give the business community some much needed oxygen to survive this pandemic.

Financial assistance: The apathy of banks in the state towards extending financial assistance (loans) citing previous NPAs is well known. Genuine Naga entrepreneurs who need financial assistance to sustain their businesses and grow usually end up having a frustrating time visiting banks. Given the extra ordinary situation, the state government has to discuss with banks in the state and device a modality to extend loans to genuine Naga entrepreneurs who pay regular taxes and file returns.

Entrepreneur friendly policies: With a functional industrial policy nonexistent in the state, doing business is not easy, as is evident from the state’s “ease of doing business“ national rankings. Naga entrepreneurs today do not get much government assistance – be it to start new ventures or scale up existing businesses. As we are mostly first generation businessmen some hand holding and support will be of great help.

Focus on existing enterprises: Since the pandemic started, a lot of focus has been on start-ups and rehabilitating returnees. State government has to remember that existing businesses in the state are the main taxpayers and we employ thousands of people. Existing businesses who are struggling need to be rehabilitated first.

Departments need to get their act together: We do not expect state government departments to do big things and make big plans for us. The government should make achievable and small plans in coordination with the business community. Smaller plans and goals are easier to achieve and can be measured. With the experience gained from them, the government can make bigger plans.

The Business Association of Nagas will always be ready to discuss, share our expertise and help the state government to make decisions for the welfare of the business community.

Yours sincerely,

Vitho Zao
President

Dr Lanusangla Tzudir
General Secretary