New Delhi, Delhi, India | 1st May 2020: The Indian Polyurethane Association (TIPA) has placed a request with the Government to ease the functioning of the sector in order to help it sustain the current Coronavirus pandemic. The body comprising of raw material, machinery manufacturers and processors utilizing Polyurethane in applications like mattresses, furniture, automotive, building & construction, refrigeration, cold storages, footwear, paints, and adhesives have been highly affected due to the ongoing COVID-19 pandemic, beset with their own challenges of Small and Medium scale sector and the stoppage of imports of raw material.
Taking all factors into consideration, the govt. registered body has taken this step as a directive of all its stakeholders. In a formal letter to Ms. Nirmala Sitharaman, Hon’ble Minister of Finance and Corporate Affairs, the Association of Polyurethane industry has detailed out a few requisites that require her attention for survival of the industry.
- The release of GST refunds to Excise Exempted Units at the earliest and accelerating the GST refunds to improve the Cash Flow. Additionally, deferment of GST deposits up to 90 days.
- Support of 50% wages from the government, pursuant to the Government’s mandate on workers being paid in full for the lock-down period. The government may also use ESI funds for the same.
- Employer and Employee contribution towards PF and ESI may be borne by the Government for a period of three months only, as payment of wages is mandatory for workers.
- Postponement of Advance Tax due for June 2020 to Sept 2020.
- Increase of Credit Limit to 30% from 25% without any additional collateral or conditions, on Ad-hoc basis. Banks may also be requested to reduce the margin money from 25% currently to 10%. The Debtor’s limit including single party limit may please be increased by 60 days by the Banks. Loan installments may be deferred by 90 days by the Banks without charging any interest for this period.
- Reduction of Customs Duty and Surcharges by 50% for the next three months. The Demurrage charges, Port/land charges, CFS Charges, late filing charges all due to the 40 days lock-down may please be waived, since several containers of the raw materials are in Port/ICD, which cannot be moved due to transportation problems.