INDIA: COVID-19 EMERGENCY MANAGEMENT FOR ITALIAN COMPANIES

Update: India Lockdown complete for 21 days as of midnight today, March 24, 2020

  CURRENT SITUATION As of today, March 24, 2020, at 8:30 a.m. Indian Standard Time, a total of 499 confirmed cases of COVID-19 have been reported from 27 states and union territories across India, with 10 deaths. The state of Kerala tops the list with 95 cases, followed by the state of Maharashtra (87 cases). New Delhi has reported 31 cases, and Mumbai has confirmed 24 cases. According to the Indian Council of Medical Research (ICMR), the country is in the second phase of transmission, namely local transmission. On a positive note, there is currently no sign of community transmission, which is the third stage of the epidemic. On social media, reports are mounting about state-run quarantine facilities in India where multiple people are forced to share rooms and dormitories. This has raised concerns that such sanitary conditions could actually accelerate the spread of the virus. The poor conditions of these facilities are also driving people to avoid quarantine. This is a worrying development because it could endanger more lives and lead to widespread panic. For example, it has been reported that more than 10 travelers returning from Dubai, who were exhibiting symptoms of COVID-19, fled a hospital in Mumbai while they were waiting for their test results. In one high-profile case, a Bollywood singer who tested positive for COVID-19 reportedly ignored the authorities’ advice to self-quarantine and attended public events where political figures were also present. There have been reports of patients breaking into quarantine facilities, triggering a frantic manhunt by health officials and law enforcement, who were subsequently forced to track down people with whom they may have come into contact. The Octagona Task Force is available to provide free support to all Italian companies seeking advice and information on how to manage this complex situation in India.   THE INDIAN GOVERNMENT'S RESPONSE 30 states and territories across the Union, including New Delhi, have been placed under lockdown until March 31, 2020. The focus is on closing all businesses except for essential services such as hospitals, telecommunications, pharmacies, and grocery stores. Starting March 22, Prime Minister Modi has called for voluntary self-quarantine by the entire population from 7:00 a.m. to 9:00 p.m., urging people to stay home except for those employed in essential services, and implementing guided social distancing measures. All schools, universities, and public venues such as clubs, shopping malls, movie theaters, restaurants, gyms, and spas have been closed. Banks and delivery service companies remain operational but with significantly reduced hours and very limited staff. In consultation with medical professionals, detailed guidance has been issued to all healthcare facilities to avoid non-urgent hospital admissions and minimize surgical procedures. A complete ban on international commercial passenger flights from any airport in India is in effect from March 22, 2020, until further notice. From March 25 through March 31, all domestic flights are also suspended, as are all rail services, including commuter trains, metropolitan rail services, and interstate passenger transport. Freight trains may continue to operate to ensure the availability of essential goods. These restrictions are temporary but are considered essential to breaking the chain of transmission. States have been asked to ensure that, while these measures are in place, necessary steps are taken to minimize hardship for the poor and vulnerable sectors of society. Furthermore, the government, at both the federal and state levels, has urged private companies and businesses not to cut wages or suspend operations at any level to avoid a potential recession caused by the epidemic.   OCTAGONA INDIA'S OPERATIONAL RESPONSE Octagona India, the Indian subsidiary of Octagona srl (knowledge partner of the Indian Embassy in Italy), with its offices in New Delhi, Pune, Bangalore and personnel in Mumbai and Chennai, has decided to implement the new ministerial provisions effective Friday, March 20, 2020, until further notice. The health and safety of Octagona India's employees and our clients are of utmost importance to us, and we do not wish to take risks, aiming to ensure the safety of all parties involved. Even before government directives, Octagona India had decided to avoid external contact in our offices; thus avoiding any meetings with external guests and prohibiting all employee travel. To ensure operational continuity, Octagona India has made sure that every employee has the necessary tools to continue working safely from their homes, providing laptops, internet, and mobile connectivity. Using cloud technology, we have stored all our official documents within a certified cloud, so they are accessible to all employees for sharing, editing, and storage. Even in smart working mode, we diligently observe our standard working hours to ensure our availability to our clients in case of need.   LATEST NEWS. Some points were announced on the afternoon of 03/24 by the Indian Finance Minister. At the moment, no direct support for companies from an employee management perspective is evident. Income Tax Payments: Prorogato il termine per la presentazione dei versamenti sul reddito d’impresa al 30 giugno 2020. Nessuna estensione, ma in caso di deposito ritardato di TDS, verrà addebitato solo un interesse ridotto del 9% fino al 30 giugno (il tasso attuale è del 18%). GST Payments (Indian VAT): The deadline for GST payments for March, April, and May has been extended to June 30. Companies with a turnover of less than 50 million INR (625,000 EUR) will not be required to pay interest, late fees, or penalties; however, for larger companies, while late fees and penalties will not be charged, interest will be levied at a reduced rate of 9%.   Other ads: – The deadline for many acts and schemes, including Vivad Se Vishwas and Sabka Vishwas Scheme, has been extended to June 30, 2020. – Customs will be operational 24/7 until June 30, 2020. – The timeline for company audits will be shifted to the 2020-21 financial year. – The thresholds under the Insolvency and Bankruptcy Code (IBC Sections 7, 9, 10) have been raised, with the default threshold now set at ₹10 million (slightly over €120,000). – Banking charges have been reduced on all digital transactions for all commercial and financial players.   OCTAGONA'S SUGGESTIONS Below is a list of key points that we suggest implementing immediately for all our clients and Italian companies present in India: – For those companies that have not yet declared they are working remotely, it is essential to proceed immediately by implementing a specific policy. – Ensure that all employees are equipped with all the necessary tools to perform their daily activities from their homes, utilizing mobile conference calls, Skype, or cloud-based solutions. – Inform all clients, suppliers, and other stakeholders about the remote working arrangements and their impact on daily operations. – Ensure the delegation of authority for business continuity on key matters (such as banking activities, interfacing with authorities, and communications with major clients/suppliers). – Create a task force that can engage in timely discussions on all important internal and external company matters and is authorized to make decisions accordingly. – Develop an operational crisis management plan, evaluating any support measures that may be introduced by the Indian Government in the coming days, or alternatively, adopting a practical approach to reducing local operations. The Octagona Task Force is available to provide free support to all Italian companies seeking suggestions and information to manage this complex phase in India.