The garment manufacturers in Tiruppur and the Micro, Small and Medium-scale Enterprises (MSMEs) in Coimbatore have appealed to the Union government for financial support as the units remain shut for a month because of the lockdown in the State.
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Raja M. Shanmugham, president of Tiruppur Exporters’ Association, said the State government should permit the exporters to work with available labourers and restart production. The Central and State governments should also ensure that the industry is able to vaccinate all the workers.
South India Hosiery Manufacturers’ Association president A.C. Easwaran said that last year with 43 days of total lockdown to control the pandemic, the knitwear industry was hit badly. This year, the units are again closed for almost a month now. The government should permit the units to start working with 50 % labourers so that they are able to prevent losses and generate jobs for more workers.
Mr. Shanmugham also sought 10 % additional credit assistance of up to 10 % of the outstanding as on February 29, 2020 to MSME borrowers covered under ECLGS 1.0 without any precondition for restructuring of the account. Further, the government should announce RoDTEP rates immediately and extend the interest equalisation scheme for three more years.
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The job working powerloom units in Tiruppur district have sought waiver of loans given to the weavers.
President of Coimbatore District Small Industries Association M.V. Ramesh Babu said that as the MSMEs here are under complete lockdown for four weeks now, the units are unable to resume normal operations. “There has not been any support from banks / financial institutions. In spite of all the financial hurdles, considering that our employees have to meet their basic requirements, we have made due payment of wages/salaries for the month of May, 2021,” he said in a press release. With nil collection from the customers, the units are not having working capital. Hence, the government should extend the moratorium for one more year for both term loan repayment and interest.
“At this juncture, it is completely impossible for us to make payment towards taxes – GST / Income Tax which fall due during June and July 2021. It is our sincere request to extend the due dates for all tax payments due during June and July 2021,” he added.
The government should come out with a fresh financial stimulus package and relax norms for submission of stock and book debts statements, documents, etc.