The steps announced by the Government to support the overall economy and MSME sector recently, haven’t proved to be much beneficial so far.
The garment manufacturing industry is still struggling and has asked for more support, mainly to extend the moratorium for another 7 months, from 1 September 2020 to 31 March 2021.
Raja M. Shanmugham, President, Tirupur Exporters Association (TEA), said that as the financial situation of Tirupur apparel cluster has not improved, they are not in a position to repay the loan and interest, and so extension of moratorium is must.
The extension of moratorium will be beneficial to the industry and banks, as well as will help the country’s economy.
TEA has written in this regard to Prime Minister, Ministry of Finance, Ministry of MSME and RBI.
The MSME units, whose credit exposure is more than Rs. 25 crore, have been deprived of receiving the Emergency Credit Line Fund now. Substantiating on the same, Raja. M. Shanmugham said by denying the benefit, the real intention of the Government to extend crucial support to all MSMEs and bail them out from the impact of COVID-19 pandemic would not serve and, therefore, RBI should relax the condition and permit even those MSMEs which are having credit exposure of more than Rs. 25 crore also get 20 per cent of outstanding credit by keeping a maximum limit of Rs. 25 crore.