Port Wings News Network:
Tirupur Exporters Association (TEA) on 6 August 2019 appealed to the Union Government to insulate MSMEs from following BASEL III norms and categorically mentioned that the requirement of credit rating insisted under BASEL III norms before getting loans from banks are not at all necessary, as the rating is not reflecting the true nature of whole Knitwear Garment Sector and the real performance of the respective unit.
Shri. Raja M Shanmugham, President, TEA participated in the meeting chaired by Shri. Nitin Gadkari, Union Minister of MSME and Smt. Nirmala Sitharaman, Union Minister of Finance and organized at North Block, New Delhi on 6 August 2019 and discussed the issues of MSMEs which have to be addressed expediently for the growth of Tirupur MSMEs. Shri. Anurag Singh Thakur, Minister of State of Finance and Corporate Affairs and Dr. Arun Kumar Panda, IAS, Secretary, MSME were also in the meeting.
He further requested for restructuring of the unit two times rather than one time considering the sessional business nature of knitwear garment units. While deliberating on the NPA classification, he requested to take in to account 180 days period against 90 days existing now.
Shri. Raja M Shanmugham also pointed out the repercussions in the employment side including repayment of loans to banks if the issues are not immediately resolved.
He also pleaded for the announcement of an alternative scheme in place of MEIS to enhance the competitiveness of beleaguered Knitwear garment exporting MSMEs in Tirupur and sustain in the global market. The Ministers have assured to address the issues for the growth of MSMEs.
He said a requisition letter has been submitted for the immediate action to bail out the Tirupur MSMEs from the crisis and to restore the business confidence.