I-T raids premises of Cafe Coffee Day owner V G Siddhartha

The Shopping Centres Association of India (SCAI) on Monday said the sector has lost over Rs 90,000 crore in the last two months, owing to the lockdown, and market players need much more than the repo rate cut and the loan moratorium extended by the RBI.

In a statement, the industry body said that the Reserve Bank of India's (RBI) relief measures are not adequate to support the liquidity needs of the industry.

According to the SCAI, there is a common misconception that the shopping centres' industry is centred around metros and large cities with investments only from large developers, private equity players and foreign investors.

"However, the fact is that most malls are part of the SMEs or standalone developers. i.e. more than 550 are single owned by standalone developers out of the 650-odd organised shopping centres across the country and there are 1,000+ small centres in smaller cities," it said.

Amitabh Taneja, Chairman of SCAI said: "The organised retail industry is in distress and has not earned anything since the lockdown and their survival is at stake. While the extension of the loan moratorium talks about some relief on repayment but won't help the industry in liquidity."

He said that a long term beneficial plan from the government is much required to revive the sector.

"Being the most safe, accountable, and controlled environment, unfortunately, malls have not been permitted to open which will lead to job losses and might even shut shops for a lot of mall developers," Taneja said.

In its representations to the Centre and the Reserve Bank of India, the association has also pointed out that, in absence of financial package and stimulus from the RBI, over 500 shopping centres may go bankrupt, that may lead to the banking industry staring at NPAs of Rs 25,000 crore.

The industry body has put forward its recommendations and requests to the government. It had sought moratorium till March 2021 at the least in terms of repayment of bank loans, interest, EMI and so on, without levy of any penalties or penal interest.

It has also sought a one-time loan restructuring with lower rates of interest, permitted for shopping centres and a facilitative and forward-looking support provision of short-term financing options for a period of six to 12 months, at lower interest rates, to meet the increased working capital requirements.

Among other relaxations, it had also appealed for GST rebates to offset the losses on account of and for the period of closure of business.

It also said that interest rates should be brought down to "manageable levels" of 5-6% in view of the precarious financial situation.

Bengaluru, Jan 2: Prime Minister Narendra Modi on Thursday slammed states, which have not enrolled with the Pradhan Mantri Kisan Samman Yojana (PMKSY), saying that such petty politics has done great damage to the farming community.

"I expect that in the new year, those states which are not associated with the Kisan Samman Yojana will at least become a part of it this year," the Prime Minister said at a function in Tumakuru where he disbursed Rs 12,000 crore to six crore beneficiaries under the government scheme in one-go.

Also, he gave away the Krishi Karman Award to the selected farmers and distributed fishing equipment to the chosen ones on the occasion. Modi said political considerations by the state governments in implementing the PMKSY has caused severe loss to the poor farmers.

"Such politics has never strengthened the farmers. Our government understood your (farmers') needs, requirements and your aspirations and accordingly tried to implement the schemes," said Modi.

He further said his government never saw agriculture in fragments but in its totality. Claiming his government has ensured that the entire money reached the poor beneficiaries, Prime Minister hit out at the previous governments, when middlemen ruled the roost.

"There was a time when a rupee was rolled out (by the government) for the poor person, only 15 paise would reach him. The middlemen would pocket the remaining 85 paise. "Today, whatever money is dispatched from Delhi, the entire amount directly reaches the bank account of the beneficiary," he said.

He told the gathering about the various initiatives taken by his government to improve the agriculture sector such as completing the pending irrigation schemes, soil health card and 100 per cent neem-coating in urea.

Due to the initiatives of the government, agriculture production has gone up, he said. Speaking about measures in the fisheries sector, the Prime Minister said the sector has been promoted in the villages, financial help given to fishermen, modernisation of boats and building fisheries-related infrastructure have been done.