The Tiruppur Exporters’ Association (TEA) has sent a letter to finance minister Nirmala Sitharaman requesting her to announce an additional credit assistance of up to 10 per cent of the outstanding as on February 29, 2020, to micro, small and medium enterprises (MSME) borrowers covered under the Emergency Credit Line Guarantee Scheme (ECLGS) 1.0 without any precondition for restructuring of the account.
The tenor may be fixed as five years, comprising repayment of interest only during first year and interest and principal in four years thereafter, the association requested.The Tiruppur Exporters' Association has sent a letter to finance minister Nirmala Sitharaman requesting her to announce an additional credit assistance of up to 10 per cent of the outstanding as on February 29, 2020, to MSME borrowers covered under the Emergency Credit Line Guarantee Scheme 1.0 without any precondition for restructuring of the account.#
TEA president Raja M Shanmugham requested her to immediately announce rates for the Remission of Duties and Taxes on Export Products (RoDTEP) scheme and extend that to the knitwear exports sector as proposed by the GK Pillai Committee.
He also requested the minister to extend the Interest Equalisation Scheme for three years to enhance India’s competitiveness in the global market. The scheme’s extension was announced only for three months, which will expire on June 30 this year.
The KV Kamath Committee has identified the textile sector as one of the financially-stressed sectors, the letter said. The readymade garments sector, comprising 95 per cent MSMEs, is facing a host of issues, including liquidity crisis and impact of the second wave of the pandemic, it added.
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