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The auto agency ACMA said on Friday that it had been blocked due to a coronavirus pandemic and would suffer about Rs 12 crore per day, and urged the government to propose a fiscal plan, including relaxing borrowing standards, in order to survive in the current situation.

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The Auto Parts Manufacturers Association (ACMA) says the current situation is unprecedented. Despite the , all possible steps are being taken to safeguard the interests of their employees.

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"In this hour's challenge, the auto parts industry was supported by the government. However, due to the complete suspension of production in the auto industry and a shortage of working capital, the status of the parts manufacturing sector, including the second and third tiers, has been Appeared. It became very sharp and threatened their survival. "ACMA Chairman Deepak Jain said in a statement.

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He further said: "We have asked the government to help us immediately relax our borrowing standards and statutory payments and extend the one-year moratorium on principal and interest."

ACMA is seeking support by extending the moratorium on the payment of principal and interest for at least one year, such as relaxing working capital and statutory payments, and relaxing working capital such as the NPA's recognized rules.

It also called for a relaxation of fixed electricity charges and a demurral fee of at least seven days to clear imported goods.

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Jain said that due to a three-week , production across the country's auto industry has stalled.

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He added that auto parts manufacturers, especially Tier 2 and Tier 3, face severe difficulties in cash flow and, if not resolved immediately, will cause multiple companies to go bankrupt.

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"In addition, in the coming months, there is no certainty about how the market will develop, which further weakens the industry's confidence. It is estimated that the production loss of the components industry is Rs. 101.2 crore,"

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He added that despite economic constraints, there are still more than 100 It has been decided not to reduce the salaries of employees, including temporary employees.

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Jahn said ACMA has set up a working group that is assessing the possibility of its members making masks and hand sanitizers.

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"Several components There is a keen interest in making these items. Specifically, for ventilators, members are evaluating options for importing ventilators through their CSR funds. "

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The auto parts industry accounts for 2.3% of the country's GDP and 25% of the country's manufacturing GDP, employing more than 500,000 employees.

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In the 2018-19 fiscal year, the industry's turnover reached 57 billion U.S. dollars and exports were 15 billion U.S. dollars.

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