AEPC requests extension of Interest Equalisation Scheme

“Given the extremely volatile and uncertain cash flow situation of the apparel exporters, we request you to kindly announce continuity of the interest subvention scheme which expired on March 31, 2020," AEPC chairman Dr A Sakthivel said in a letter to Union commerce and industry minister Piyush Goyal.

“It is further requested that this enhanced 5 per cent Interest Equalisation Scheme so far available to MSMEs may also kindly be extended to all the apparel exporters for at least two years up to March 31, 2022 to enable the industry to have affordable access to credit. In the absence of any announcement on this scheme, the banks are debiting the accounts of the exporters,” Sakthivel said in the letter.

He further requested the minister to impress upon the ministry of finance and the RBI Governor on certain other issues that are affecting the apparel exporters. The requests include extension of packing credit and forward contract by six months without penal interest and waiver of penalty imposed on forward covers by some banks. He also requested for an increase in working capital limits by minimum 25 per cent without any additional collateral.

“Sir, the present crisis is the biggest challenge faced by our apparel export industry. Your decisive and timely action will help mitigate the suffering of the apparel industry and the millions of our workers,” the letter said.

Sakthivel thanked the commerce and industry minister for taking bold and pragmatic initiatives to help the industry in mitigating the present huge crisis.

Fibre2Fashion News Desk (RKS)