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SRTEPC seeks financial package to pay wages to workers

Apr '20
Pic: Shutterstock
Pic: Shutterstock
The Synthetic and Rayon Textiles Export Promotion Council (SRTEPC) recently urged the Indian government to compensate the expenses being incurred during the 21-day lockdown to pay wages to employees and costs related to the cancellation and deferment of export orders. A separate relief package is needed for the man-made fibre MMF textiles segment as it has been suffering due to an inverted duty structure under the goods and services tax (GST) regime, it said.

The support expected is similar to the one extended by the Bangladesh government, which is transferring three months' salaries directly to textile sector workers through commercial banks and the amount is to be repaid at 2 per cent interest in 18 instalments within two years by the employers, SRTEPC chairman Ronak Rughani told textile ministry officials recently.

The government needs to grant a special export incentive of 3 per cent on fibre and yarn, 4 per cent on fabric, 5 per cent on made-ups for at least six months or till the impact of the novel coronavirus subsides and global markets stabilise, the industry players demand.

Additionally, there is a need to enhance working capital limits and advances for exports on a case by case basis without any collaterals.

The industry needs to be provided 30 per cent additional working capital at 7.25 per cent interest for both exports and domestic production without any collaterals and margin money to meet working capital needs, pay salaries and wages and meet the standing charges, according to Indian media reports.

Fibre2Fashion News Desk (DS)

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