MSMEs seek financial package

Industries, particularly the Micro, Small and Medium-scale Enterprises (MSMEs) in Coimbatore and Tiruppur districts have appealed to the Central and State governments to extend a special financial package to the units.

The Industrial Associations of Coimbatore appealed to the Union Finance Minister to announce a stimulus package for MSMEs that are affected by the pandemic and lockdown.

The interest moratorium for six months has been debited with the entire six months interest on March 31, this year. Further, one-year interest moratorium for principal repayment will start for all the units from June. The units that are already under stress due to interest moratorium and price increase of raw materials, will not be able to meet the payment deadline set by the banks. More than 80% of the MSME units will become NPA and will be forced to shut down their operations, the associations pointed out.

Also, in a move to create demand and consumption, GST has to be revised downwards to just two slabs – 10 % and 15 % and all pending GST and IT refunds should be released to industries immediately.

Tiruppur Exporters’ Association president Raja M. Shanmugham said in a press release that the units should get three moratorium for all existing loans. The Emergency Credit Line Guarantee Scheme should be extended to more accounts and should be given to readymade garment units in the MSME sector.

The Coimbatore and Tirupur District Micro and Cottage Entrepreneurs Association president C. Sivakumar said in a press release that the Goods and Services Tax on job working units should be reduced to 5 %, the penalty for those who pay the tax beyond the stipulated time should be withdrawn given the pandemic impact, and there should be more relaxations in GST returns filing, etc.

Apparel Export Promotion Council (AEPC) chairman A. Sakthivel said the Central government should direct State governments to exempt garment exporting units from lockdown as these factories cater to seasonal needs of international customers. The apparel exporting units should be classified under the “essential” category, he said.

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