TEA requests govt to announce ECLGS for garment sector MSMEs
Tirupur, Sept 24 (KNN) The Tiruppur Exporters' Association (TEA) on Saturday urged the government to announce Emergency Credit Line Guarantee Scheme (ECLGS) specifically for Garment Sector MSMEs.
TEA in a press release to Nirmala Sitharaman, Union Minister of Finance has said that 20 per cent of existing credit should be provided to bailout the Tirupur knitwear garment exporting units from the ongoing liquidity crisis happening due to issues like fewer booking orders, delay in receiving the payment, non-acceptance of booked orders and deferment of shipment.
The association president, Raja M Shanmugham pointed out that at a time when Tirupur Knitwear Exporting MSMEs have been taking their maximum efforts and struggling to come out from the twin impact of the COVID pandemic and the Cotton yarn price hike, the cascading effect of the Russia-Ukraine War in EU, UK and USA Markets have literally aggravated the situation and he apprehends the sustenance of MSMEs.
TEA has also appealed to RBI Governor Shaktikanta Das requesting for relaxation in NPA norms to the MSMEs when the overdue timeline exceeds 90 days and appealed not to classify them as NPAs.
It has also issued letters to the respective bank's Chairman/MD/ED to highlight the ground reality of the happenings of the Tirupur Cluster.
The exporter association is hopeful that the government will come forward to protect MSMEs and Employees. (KNN Bureau)