The Assembly was informed on Monday by Manipur Chief Minister N. Biren, who is also in charge of finance, that the majority of the State’s company owners were unable to pay back the loan balances plus interest. The government had attempted to assist the businesspeople by placing a moratorium on the repayments, but they had not responded enthusiastically. The moratorium needed to be extended twice, according to Mr. Biren.
He was responding to a motion that Thangjam Arunkumar had brought to raise notice. According to Mr. Arunkumar, the majority of businessmen were dealing with various forms of difficulties. Since there was no moratorium and the loan was not paid back, the majority of banks may pursue legal action. The COVID-19 epidemic and the continued instability stemming from the Kuki Meitei conflicts were the primary causes of the catastrophe.
Mr. Arunkumar went on to say that the increase in shipping costs was causing difficulties for new entrepreneurs. The overall pricing were affected by an increase in the freight fees. He demanded exceptional steps, as some large States had already done.
According to Mr. Biren, collaboration was required since the Manipur government was unable to repay the enormous sum through any kind of arrangement.
He said that there had been two notices from the administration regarding the moratorium. A second warning was sent out, this one valid through March 2024.
