Ashwin Chandran, Chairman, The Southern India Mills’ Association (SIMA) has thanked Prime Minister Narendra Modi for announcing the special economic and comprehensive package of Rs.20 lakh crores equivalent to 10% of India’s GDP to make the country to march towards self-reliant India.
He has thanked the Government for revising the definition of MSME, a long pending demand for the industry by incorporating annual turnover and increasing the investment limits under the eligible criteria and increasing the turn over limit up to Rs.100 crores and investment limit upto Rs.20 crores for medium size units.
Ashwin has stated that since the textiles & clothing industry predominantly MSME in nature, this will greatly benefit over 60% of the textile units across the textile value chain especially the garment and made-ups units. He has thanked the Government for allocating Rs.3.00 lakh crores to extend collateral free loans for businesses including MSMEs and also providing four year tenor with moratorium of 12 months on principal repayment, allocating Rs.20,000 crores for stressed MSMEs and Rs.50,000 crores for potentially viable MSME units.
SIMA Chairman has also welcomed the marginal reduction of 2% in the employer’s and employees’ contribution in the EPF and 25% reduction in the TDS and TCS that would help to improve the liquidity to certain extent.
SIMA Chairman has hoped that the Government would consider industry’s dire demand of extending the moratorium for repayment of loans and interest already extended for three months from 1st March 2020 for another 10 months, i.e., upto 31st March 2021. He has also hoped that the Government would also consider and extend 25% additional working capital without any collateral or margin money for all the categories of accounts other than MSMEs also in the next financial relief package to be announced shortly.
Ashwin also has hoped that the Government would soon announce a special package for boosting exports for all the textiles & clothing products including cotton yarn and fabric to grab the emerging opportunities and also consuming the surplus cotton that might significantly affect the cotton farmers in the country.
Ashwin Chandran has appealed the Government to modify the MSME definition criteria as either investment or annual turnover to encourage technology upgradation in the MSMEs sector and also help the help the capital intensive sectors like spinning, independent weaving, processing, etc.