The Apparel Export Promotion Council (AEPC) has requested the government to extend the Interest Equalisation Scheme for a minimum of two years and at a rate of 5 per cent for all apparel exporters.
It has also requested extension of packing credit and forward contract by six months, and an increase in working capital limits by minimum 25 per cent.
“Given the extremely volatile and uncertain cash flow situation of the apparel exporters, we request you to kindly announce continuity of the interest subvention scheme which expired on March 31, 2020,” Dr A Sakthivel, AEPC Chairman said in a letter to Piyush Goyal, Union Commerce and Industry Minister.
“It is further requested that this enhanced 5 per cent Interest Equalisation Scheme so far available to MSMEs may also kindly be extended to all the apparel exporters for at least two years up to March 31, 2022 to enable the industry to have affordable access to credit. In the absence of any announcement on this scheme, the banks are debiting the accounts of the exporters,” Sakthivel said in the letter.
He further requested the minister to impress upon the ministry of finance and the RBI Governor on certain other issues that are affecting the apparel exporters. The requests include extension of packing credit and forward contract by six months without penal interest and waiver of penalty imposed on forward covers by some banks.
He also requested for an increase in working capital limits by minimum 25 per cent without any additional collateral.
