AEPC requests for Interest Equalisation Scheme for Apparel exporters till March 2022

New Delhi, Apr 29 (KNN) Indian Apparel exporters have requested the government to extend the interest equalisation scheme for a minimum of two years and at a rate of 5 per cent for all Apparel exporters.

In a letter to Commerce and Industry Minister Piyush Goyal, Apparel Export Promotion Council (AEPC) Chairman Dr A Sakthivel wrote, “Given the extremely volatile and uncertain cash flow situation of the Apparel exporters, we request you to kindly announce continuity of the interest subvention scheme which expired on 31 March 2020.

“It is further requested that this enhanced 5 per cent Interest Equalisation Scheme so far available to MSMEs may also kindly be extended to all the Apparel exporters for at least two years up to March 31st, 2022 to enable the industry to have affordable access to credit. In the absence of any announcement on this scheme, the banks are debiting the accounts of the exporters.”

Dr Sakthivel further requested Goyal to impress upon the Ministry of Finance and the RBI Governor on certain other issues that are affecting the apparel exporters. The requests include extension of packing credit and forward contract by 6 months without penal interest and waiver of penalty imposed on forward covers by some banks.

He also requested for an increase in working capital limits by minimum 25 per cent without any additional collateral.

“The present crisis is the biggest challenge faced by our Apparel Export Industry. Your decisive and timely action will help mitigate the suffering of the Apparel Industry and the millions of our workers,” the letter read further.

Dr Sakthivel thanked the Commerce and Industry Minister for taking bold and pragmatic initiatives to help the industry in mitigating the present huge crisis.