Textile units in the region have welcomed the Central government announcement raising the ceiling of outstanding loan limit and turnover for companies to avail of the benefits under the Emergency Credit Line Guarantee Scheme (ECLGS).
Chairman of Apparel Export Promotion Council A. Sakthivel said, We welcome the decision of the government to increase the outstanding loan limit from 25 crore to 50 crore and for raising the turnover criteria from 100 crore to 250 crore for availing ECLGS.
Mr. Sakthivel added that, 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 100 crore and there should be no turnover criteria for exporters.
He said that while the turnover of garment exporters may seem large due to foreign exchange rate fluctuations, the thin margin on which they and the seasonal nature of the products make these exporters vulnerable to changes in export orders and delay in shipment, which is clearly evident during the ongoing crisis. They should be able to benefit from the scheme, he said.
According to Prabhu Dhamodharan, convener of the Indian Texpreneurs Federation, it had appealed last month for this much needed change in the scheme. With this calibrated intervention, many of the medium-sized units in textile sector will get much needed liquidity support. Being a capital intensive industry , many of our spinning sector companies will be covered under the ECLGS scheme, he said.
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