The massive spread of the Covid-19 virus across the globe is causing serious loss to the people. The virus has drastically expanded its footprints in various regions. This challenging phase has tested the capabilities of our government to ensure the safety of all the citizens. In line to keep everyone safe, our government is staking effective initiatives to minimize the impact of this deadly virus. The government's step of lockdown the entire country for three weeks has shown quite good results in terms of controlling the further spread of this virus. But at the same time, business owners are phasing huge challenges to sustain their businesses and paying the liabilities.
Information and technology sector is one of the big sectors in the country and all the stakeholders are very much concerned in this challenging time. They are desperately seeking the prospects of some relief from government in context of easing the cash flows. The channel community is likely to bear huge loss on account of the interrupted circulation of finance and their stock as well. Progressive Channels Association of Information Technology (PCAIT) is receiving the grievances of its partners/members regarding the dis-continuity of their businesses and dearth of finance which is required to meet their basic needs.
Mr. Saket Kapur, General Secretary, PCAIT recently wrote an open letter to Prime Minister Modi and appealed the government to take care of IT market concern. He said, "I am ardently appealing hereunder on behalf of Progressive Channels Association of Information Technology (PCAIT), an association of business entities of business owners and entrepreneurs in the domain of supply and services of Information Technology hardware, software products and accessories. It is pertinent to submit that businesses of our members are potential breeding grounds for jobs wonted for skilled, semi-skilled and unskilled youth of the country."
"The Nation is facing unprecedented crisis arisen from zoonotic infection of Covid-19 and the Government of India by promulgating countrywide Lockdown has demonstrated alacrity in timely responding to avert further spread of infection. Understandably, the decision of three weeks complete lockdown has been rationally arrived after balancing the healthcare and economic imperatives. At the outset on behalf of PCAIT, I express solidarity of all our members to the clarion call of Government of India for 'Lockdown' and consequently righteously have shut down respective businesses and are confined to their respective homes" he added.
The government is aggressively adopting the useful measures in keeping the situation in control. Our country has achieved a big success in this battle as compared to the developed countries i.e. USA, Italy, Iran, Spain and etc. The international media is rapturously applauding the proactiveness shown by the Leadership of Government of India while dealing with the current crisis thus giving a reason to every Indian to remain felicific and be convinced to emerge winner after this 'Mahabharat with Covid-19.
Mr. Saket Kapur commented, "I herein elicit aftermath of lockdown of expected sufferance of small businesses with regard to cash flows and ensuing default in discharging the contractual payment liabilities. Quintessentially, Capital of small business entity is divided between Stocks in hand, Stocks in transit and receivables from customers besides necessary fixed assets to successfully perform the business functions. Hence, in view of fact of loss of business imputed to lockdown, the Government of India must issue to both private and government enterprises an appropriate directive for immediate payment of confirmed credits to small business entities. Else, there is all the likelihood of triggering of dominoes of payment default, including inability of small business entities to pay the salaries of employees for the period of lockdown. Whereas, it is common knowledge that on the other hand European Governments are funding business entities to keep employees on the payroll through the pandemic."
Channel partners and other stakeholders of the ICT industry are hoping that the government will take notice on their issues. The channel partners have started getting the pain due to their unsettled refunds/credits from the tax department. "We at PCAIT reiterate foregoing directive and vehemently press the bona fide demand for immediate issuance of directive from Government of India to both direct and indirect Tax departments to refund to small business entities long pending Income Tax and GST, with the intent to ease the small business cash flows" stated Mr. Saket Kapur.
In the fight with the coronavirus, the people of our nation are contributing on larges basis to the recently formed "PM Cares Fund". The donations are being made to help our government in various fronts such as helping the needy people, purchasing the safety kits for the frontline heroes (Police & Doctors) and etc. In this situation, PCAIT has also confirmed to stand with the government and contribute to the PM's fund. Mr. Saket Kapur added, "We assure all the hands on deck in nation's fight against the Covid-19, which has, beget the global health crisis consequently, we have already initiated collection from our members to contribute to the PM-Cares fund."