Tirupur’s apparel manufacturers have made an appeal to Nirmala Sitharaman, Union Minister of Finance, to announce Emergency Credit Line Guarantee Scheme (ECLGS) specifically for apparel sector MSMEs, 20 per cent of existing credit to bailout the Tirupur knitwear garment exporting units from the ongoing liquidity crisis owing to issues like less booking order, delay in receiving the payment, non-acceptance of booked orders and deferment of shipment.
Raja M Shanmugham, President, Tirupur Exporters’ Association (TEA) pointed out at a time when Tirupur Knitwear Exporting MSMEs have been putting their maximum efforts and struggling to come out from the twin impact of pandemic and cotton yarn price hike, the cascading effect of Russia-Ukraine war in EU, UK and US markets has aggravated the situation; he advocated the sustenance of MSMEs.
He also represented 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.
Another requisition was the extension of time period of export realisation proceeds.
TEA has sent letters to the respective banks’ Chairman to highlight the ground realities happening now in Tirupur cluster.
