CITI hails decisions to stabilise Indian economy

Appreciating the efforts undertaken by the government to contain and minimise the effects of unprecedented outbreak of deadly Coronavirus (Covid-19), CITI chairman T Rajkumar stated that Prime Minister Narendra Modi's decision to impose lockdown on the whole nation till April 14, 2020 is bold and proactive to safeguard the lives of 130 crore citizens of India. He assured full support and cooperation from the textile and clothing industry to the bold move.

In a CITI press release, Rajkumar thanked Union textiles minister Smriti Irani for standing with the textile and clothing industry during the current tough situation. He hoped that international buyers will respond positively to her appeal of “commerce with compassion” by not cancelling even a single order which is already placed with the Indian textile and apparel manufacturers amid the Covid-19 outbreak.

He also thanked Union finance minister Nirmala Sitharaman for announcing ₹1.70 lakh crore relief package under Pradhan Mantri Garib Kalyan Yojana for the poorer sections of the society to help them fight the battle against Coronavirus. He also appreciated the decision of extending ₹50 lakh medical insurance to each health staff who are risking their own lives to safeguard the lives of those who are suffering from the deadly virus.

He appreciated Union minister of commerce & industry Piyush Goyal for setting up a Control Room in DPIIT to monitor the issues of internal trade, manufacturing, delivery and logistics of essential commodities during the lockdown period and for assuring that the ministry of commerce & industry is working 24X7 for extending all kind of possible help to exporters at this juncture.

CITI chairman thanked RBI governor Shaktikanta Das for addressing the industry’s immediate concerns of liquidity by taking a number of commendable steps. Three months moratorium extended for the term loans and working capital interest and also exempting the moratorium period for asset re-classification and credit rating would help the industry, he said. He hailed the steps of recalculating the drawing power to avail additional working capital and substantially reducing the repo rates and thereby reduce the bank interest rate.

Though three months moratorium had been extended for term loans and working capital interest, an immediate clarification from RBI is essential to extend moratorium for term loan interest payment as the financial year ending is fast approaching, he said.

The textile industry being power intensive, at least 25 per cent working capital without any collateral or margin money would be required for the textiles and clothing industry to make salaries and wages to the employees and meet other standing charges, Rajkumar said. He hoped that the government would closely monitor the gravity of the problems and take appropriate steps to tide over the crisis by taking suitable policy measures.

Rajkumar appealed to chief ministers and power ministers of all state governments to extend the relief measures by deferring the current consumption charges for three months and waive off the demand charges for the lockdown period in line with the steps already initiated by few state governments. He said that power cost accounts around 40 per cent of the conversion cost for the textile mills and therefore, power bill payment deferral would be an essential relief measure by state government in the wake of COVID-19 and lockdown action across the country.

Fibre2Fashion News Desk (RKS)