New Delhi, Aug 2 (SocialNews.XYZ) The Apparel Export Promotion Council (AEPC) has urged the government to increase the limit of outstanding dues for MSMEs for availing loans under the Emergency Credit Line Guarantee Scheme (ECLGS) to Rs 100 crore.
Thanking Finance Minister Nirmala Sitharaman for raising the outstanding loan limit to Rs 50 crore, AEPC Chairman A. Sakthivel said it should be further extended as financial relief to the wider industry impacted by the pandemic.
"I sincerely thank the Finance Minister for all her timely support. We welcome the decision of the Government to increase the outstanding loan limit from Rs 25 crore to Rs 50 crore and for raising the turnover criteria from Rs 100 crore to Rs 250 crore for availing ECLGS," Sakthivel said.
The ECLGS was announced in May with a provision of fully guaranteed additional funding of up to Rs 3 lakh crore to eligible borrowers.
"While more than half of the targeted additional funding is yet to be sanctioned, there are many medium scale industrialists who are bereft of the special financial assistance. The need of the hour is to expand the outstanding loan limit to Rs 100 crore and there should be no turnover criteria for exporters," the AEPC Chairman said.
He noted that while the turnover of exporters may seem large due to foreign exchange rate fluctuations, the thin margin on which the apparel exporters work and the perishable nature of their products make them vulnerable to any changes in export orders and delay in shipment, which has been clearly evident during the ongoing crisis.
Source: IANS
About Gopi
Gopi Adusumilli is a Programmer. He is the editor of SocialNews.XYZ and President of AGK Fire Inc.
He enjoys designing websites, developing mobile applications and publishing news articles on current events from various authenticated news sources.
When it comes to writing he likes to write about current world politics and Indian Movies. His future plans include developing SocialNews.XYZ into a News website that has no bias or judgment towards any.
He can be reached at gopi@socialnews.xyz