MUMBAI: The Federation of Automobile Dealers Associations (FADA) has written to Prime Minister Narendra Modi seeking immediate financial support from the government for the ailing sector amid the nationwide lockdown due to coronavirus pandemic. FADA sought complete waiver of interest on all category of loans from banks and NBFCs for the lockdown period.
The industry body, which represents around 15,000 auto dealers, also sought extension of 4% interest subvention/subsidy for working capital/loan requirements to companies for a period of nine months post the lockdown. FADA sought that the salary of people employed at the dealerships during the lockdown period should be paid through ESIC.
It has also asked for grant of MSME extension to auto retail. The subsidies and incentives received under the MSME division will provide much needed relief to dealerships, which provide direct and indirect employment to lakhs of people, FADA said.
