About 67 per cent of respondents said they would not be able to pay wages for April. With no sales and support for additional working capital from banks, factories don’t have funds. Non-payment of wages could lead to significant unrest, and CMAI members are worried that owners might not be able to visit their factories, if wages are not paid.
The association asked the government to provide 50 per cent wage subsidy up to Rs 50,000 per month for five months from March, provident fund contribution for both employer and employee for three months for employees with wages Rs 15,000 or less.
All Banks should offer interest subvention of 5 per cent on total borrowings, 25 per cent additional working capital to be made available mandatorily, subject to available drawing power on revised norms, extension of moratorium on term loans and working capital loans from three months to six months.