TN CM writes to PM Modi seeking extension of ECLGS for MSMEs

Chennai, Oct 20 (KNN) Considering the plea of garment exporters of Tiruppur, Chief Minister MK Stalin has reached out to Prime Minister Modi requesting the announcement of an Emergency Credit Line Guarantee Scheme (ECLGS) for MSMEs.

On Wednesday, he wrote to PM Modi highlighting the severe crisis the garment exporters are facing due to various factors such as economic impact of covid-19, Ukraine conflict and global recession.

He further noted that the month-on-month growth rate in readymade garment exports is showing a sharp decline.

The CM emphasised on how Tiruppur is one of India’s largest knitwear exporting clusters that caters to US, UK and European markets and how the exporting units and their supplier MSMEs are staring at a severe financial crisis.

“MSMEs constitute 95% of the exporting units in this cluster. It is reported that orders for the summer season have now declined by around 40% compared to last year,” he said.  (KNN Bureau)