: Lockdown: Retailers' body appeals to Finance Minister for timely intervention; recommends relaxation measures to avoid NPA situation in retail #FinanceIndia #StockMarketNEWS Lockdown: Retailers'
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Lockdown: Retailers' body appeals to Finance Minister for timely intervention; recommends relaxation measures to avoid NPA situation in retail #FinanceIndia #StockMarketNEWS
Lockdown: Retailers' body appeals to Finance Minister for timely intervention; recommends relaxation measures to avoid NPA situation in retail New Delhi, Apr 29 (KNN) In the wake of the lockdown due to the second wave of the pandemic, Retailers Association of India (RAI) has appealed to the Finance Minister of India for urgent intervention to prevent the sector from slipping into a position of irretrievable financial damage.
RAI said that retail businesses across the country are among the worst hit as several states have mandated lockdown of malls and shopping complexes where most modern retailers operate.
It also said that the industry is finding it hard to survive through the immense financial stress that is threatening to derail businesses. It is imperative that the Government of India steps in with requisite support to save the Retail Sector in India.
Speaking about the state of the retail industry in India, Kumar Rajagopalan, CEO, RAI, said, “Keeping in mind safety of customers and our workforce, retailers appreciate the steps taken by the government to curb the spread of the pandemic. As of now, almost 80 per cent of the retail stores are closed due to various restrictions across states, and the few stores that remain open do not have footfall.
The cash inflow of the industry has come to a standstill, while the fixed operating costs remain intact. With zero revenues retailers are still expected to pay overheads such as salaries, electricity and rentals. If a timely relief package is not provided by the government to ease the financial stress, then the industry will find it hard to survive this second wave,” he added.
In a submission to the Ministry of Finance, RAI has recommended that the Ministry of Finance and the Reserve Bank of India (RBI) step in at the right time to bring some relief to the mounting stress on the retail businesses in the wake of the COVID-19-second wave.
The immense financial duress faced by the retail sector will adversely impact both livelihood and the banking sector’s exposure to the sector as retailers start to become insolvent, the retailers body added.
In the submission, RAI have called out the following much needed relaxation measures to avoid NPA (Non-Performing Assets) situations in retail business:
Extend the benefits of ECLGS 3. 0 to Retail Companies: The government has extended the Rs 3-lakh-crore emergency credit line guarantee scheme by another three months till June 30, 2021 and also widened its scope to new sectors, including hospitality, travel and tourism.
Recommendation: RAI recommends the finance ministry to extend the benefits of ECLGS 3. 0 to retail companies also.