Textile units: Govt to extend two-year debt moratorium for debt repayment
New Delhi, Oct 22 (KNN) The Finance Ministry is considering to extend the two-year moratorium for debt repayments by struggling textile MSMEs.
According to media reports, the textile industry is facing huge liquidity problems due to delay in refund of the Merchandised Export from India Scheme (MEIS) and Goods and Services Tax (GST).
Earlier, to ease the liquidity crunch faced by manufacturers and exporters, the textile sector has sought immediate release of refunds under various government schemes.
In a joint memorandum presented by seven national-level textile associations and major export promotion councils to the government, the industry said that textile units are facing severe liquidity issues.
The industry has also formed the National Committee on Textiles & Clothing (NCTC), which comprises various groups under the chairmanship of T Rajkumar.
NCTC has urged the government to release pending tax rebate claims and reduce margin money for working capital from 25 per cent to 10 per cent and the debt equity ratio norm from 1:1.33 for the textiles industry.