50,000 crore loss to the logistics sector due to lockdown; Relief Package Required: Industry Body ICC
The logistics sector is estimated to cost Rs 50,000 crore due to coronavirus lockdown. Industrial Credit ICC called for a mitigation package for the industry on Thursday.
“The growing logistics sector is one of the biggest risks in India,” the Indian Chamber of Commerce (ICC) said in a statement.
“When the lockdown was extended on May 3, the estimated loss of the aviation industry was Rs 50,000 crore, followed by the sudden lockdown of roads and wasting of fully loaded trucks, losing toll tax and freight,” the ICC said.
While the government permits the movement of necessary and necessary goods, the situation at the ground level is not easy. Container freight centers, inland container depots, warehouses and port terminals are all essential services, and containers and freight are slowly being exhausted.
“Shipbuilding, which is delayed by 2 weeks on the high seas, is also a problem. Every 50 km, drivers seek digital permits and packaged food services for auxiliary actions and waive EMI obligations for at least 6 months until earnings become common.
It calls on the logistics industry to be a priority sector for lending – the need to release soft loans and existing loans at a lower rate, and to restore the national movement’s permits until September 2020.
In addition, GST requires the sector to be less than 12% and PPP operators are required to exclude revenue share and lease payments to government partners until September 2020 and minimum performance obligations of private operators until September 2020.
The ICC has re-evaluated the possibility of extending the current PPP plans from 6 months to 1 year, giving GST input credit to all government-sponsored health insurance facilities and such projects.