Raja M Shanmugham, President said he has made an appeal to Nirmala Sitharaman, Hon’ble Union Minister of Finance to announce Emergency Credit Line Guarantee Scheme (ECLGS) specifically to Garment Sector MSMEs, 20 percent of existing credit to bailout the Tirupur knitwear garment exporting units from the ongoing liquidity crisis happened due to issues like less booking order, delay in receiving the payment, non-acceptance of booked orders and deferment of shipment.
Raja M Shanmugham specifically pointed out at a time when Tirupur Knitwear Exporting MSMEs have been taking their maximum efforts and struggling to come out from twin impact of COVID pandemic and Cotton yarn price hike, the cascading effect of Russia-Ukraine War in EU, UK and USA Markets have literally aggravated the situation and he apprehend the sustenance of MSMEs.
He said that after seeking a help from the Hon’ble Finance Minister, he has also represented to RBI Governor Shaktikanta Das requesting for relaxation in NPA norms to the MSMEs, when the overdue timeline exceed 90 days and appealed not to classify them as NPAs. He further said the another requisition was the extension of time period of export realization proceeds.
Raja M Shanmugham mentioned that he has also sent letters to the respective banks Chairman/MD/ED to highlight the ground realities happening now in Tirupur Cluster with RBI and help for RBI to announce relaxation in NPA norms to MSMEs when the timeline exceed 90 days and not to classify the units as NPAs. Raja M Shanmugham was hopeful that the Government and RBI would consider his requisitions and come forward to protect MSMEs and Employees.
