The body claims that due to the lockdown, 6 crore jobs are directly and indirectly at stake.
The Events and Entertainment Management Association (EEMA) has filed a petition to the government seeking urgent steps to help them sustain in business after a survey conducted by them revealed that post lockdown, nearly 53% of member-companies have seen 90% of their businesses cancelled between March and July due to the Covid pandemic-driven lockdown. The body claims that due to the lockdown, 6 crore jobs are directly and indirectly at stake.
“While 53% of member-companies have seen 90% of their business are cancelled between March and July, and 63% of companies have suffered revenue loss of up to Rs 1 crore so far,” Eeema said in the survey.
While some companies warn of retrenching 50%-80% of their workforce some warned of removing 25%-50% of their workforce. All the companies have sought working capital ranging between Rs 1 crore – Rs 5 crore for the next six months and around 55% of them are looking at raising capital or debt from institutions/shareholders and VC funding. The association has urged the government to immediately release all tax refunds both income tax and TDS as well as cover the cost of salaries/daily wages for those infected by the pandemic virus and are thus unable to return to work. Further, the association requests the centre to ask banks to give a collateral-free line of credit for paying salaries and statutory dues and a moratorium of 9-12 months.
“The COVID-19 pandemic will impact the entire business community, and our team is focused on ensuring the health and safety of our employees. The sectors are getting into a financial crisis which might soon result in an increasing unemployment ratio. We hope that the government takes the required decision which can help the country to survive with the results of the pandemic,” Sanjoy Roy, president, EEMA, said.
The body also urges government to instruct insurance companies to cover future events and activities against Covid-19 or similar medical/biological disasters in addition to existing natural disasters; to cover the cost of salaries/daily wages of employees laid off for a period of 90 days minimum and a cut in the GST rate to 12% on all the arts and entertainment events.