CMDA writes to PM Modi to Allow the MSME to Sell IT products

CMDA has written to PM Modi to allow the sale of IT products, as the prohibition on them is causing hardship to the MSME sector engaged in selling IT hardware. Earlier, several channel associations had written to the PM and MHA to restrain the sale of IT products as they were non-essentials.  Following is the text of the letter, circulated by Puneet Singhal, President, CMDA -

Respected Modiji,

We hope this Mail finds you in the best of health and Spirits. We are aware that your kind self  is working 24/7 Relentlessly to fight this Global Pandemic of COVID 19 and the entire Country is with you Sir.

Meanwhile Sir we at Computer Media Dealers Association (CMDA Delhi (Regd) a Leading IT Association of the Country stand shoulder to shoulder with you Sir in times of this lockdown owing to the Covid Pandemic and also Support your kind self  to combat this Global Disaster  together.

However, we would also want your attention to some realistic situations after the lockdown. Sir the Businesses across all verticals be it the Core Industries,Tourism, Retail, E-commerce or Restaurants etc  would not be back to  their 100% Levels immediately. They would  take about 6 months to a Year or even more  to get back to their initial levels as the Consumers in general would have a changed Lifestyle including their reservations to go out at all. It is indeed a very difficult time for the Businesses across the Country and the Economy in general.

We  understand that this time is not the time to raise any undue demands from your kind self and thus  we propose the following.

All pending Income Tax and GST refunds to be processed urgently. The small Businesses could really use these Refunds now and it would be great if it could be processed within 30 days. Further Sir Ex-Gratia Amounts Equal to the one Months Average Collected GST of the Previous Years be Refunded both by the Central and the State Govts to boost the Cash Flow.

All Min Wages & Salary payments to be realistically rationalised PAN India for sustenance until lockdown while keeping them Uniform for the entire Country Permanently. The lockdown has called for us to sustain or focus on the Essentials and it’s equally difficult for both Employees and the Employers. So, in these critical times all Wages and Salary payments should be rationalised for sustenance to avoid any undue burden on the Employers too and a Waiver in Salaries/Wages between 40% to 50% depending on the Level of Employment is requested.Also the PF and ESIC contribution for the entire lockdown period should  be waived off

 Concerning Banks-To treat the Lockdown period as zero period in reference to Financial Liabilities and thus imply full Interest waivers for the present period and the next Three  months by the Banks be it Nationlised or Private. Also Sir Banking Limits be increased by 40% without any Additional Collateral Security for Businesses specially for those from the  MSME Segment.

No EMD or Security Deposits be taken from the MSME Segment for Govt Purchases and those being held be Returned immediately to Improve the Cash Flow.

Private transport vehicles should be allowed to carry permissible small business deliveries in the absence of availability of transport facilities.

Waiver of Fixed Charges in Electricity Bills: Electricity Bills have fixed and variable components. These fixed charges surmount to a huge amount specially for those engaged in Manufacturing . Thus we propose that the fixed charges for the Electricity  to be waived off across the Country just like done by the UP and Karnataka Govt for the next 3 months so that the businesses can sustain themselves in spite of their lowered revenues.

IT and IT Related Consumables/Accessories and maintenance Services  should be classified as essential Services by the Govt as without these no Hospital, Industry, Bank or Government offices can run or function properly.

Hoping to get a positive Response  from your end in these difficult times.

For CMDA-Delhi (Regd)

Puneet Singhal)

President