The Hon'ble Chief Minister Dr. J. Jayalalithaa had been to New Delhi on 13th June 2011 to call on the Hon'ble Prime Minister to discuss about the Economic Plan of Tamil Nadu and other important issues. By taking this as an opportunity, before CM visit to New Delhi, we sent a requisition letter to the Hon'ble Chief Minister to include our issues like the Ministry of Environment, Government of India filing as Assidavit in Supreme Court as an interim relief to the dyeing units, with a prayer to grant extension of time by six months for achieving 100% zero liquid discharge nad consequently permitting for reopening of Bleaching and Dyeing Units, the availability of Bank Credit in Rupee Terms at 7% / Packing Credit in Foreign Currency Loan to our knitwear export sector etc., also while having discussion with Hon'ble Prime Ministser .

In Bank Interest front, RBI Governor Dr. D. Subbarao while releasing the Mid Quarter Monetary Policy Review June 2011, announced the increase in Repo Rate from 7.25% to 7.5% and Reverse Repo Rate from 6.25% to 6.5% with effect from 16.6.2011. It was mentioned that the measures were taken mainly to control the spiraling inflation. It is to be noted that after switching over to base rate system on 1st July 2010, cumulatively, 47 Banks raised their base rates by 150 - 300 basis points during July 2010 - May 2011.

The hgher cost of packing credit has a direct impact on our knitwear export sector which has been already reeling under pressure due to closure of dyeing units. We have always been advocating for a level palying field to complete effectively in the International market.

In view of protecting our knitwear export sector from increasing of packing credit rates., we have sent letter to RBI Gonernor requesting to keep a seperate chapter for export sector in Monterey Policy and added that the export sector should be delinked with the base rate system being followed by the banks. As the base rate in the minimum lending rate, pre shipment and post shipment export credit in Indian Rupee has to be s\given at the Base Rate itself. We have also requsted that till a seperate chapter for export is announced, the Bank credit rate given to exporters has to be fixed at 7% as the interest rates prevailing in our competing Countries are lower than our banks rates and in our main competing Country China, it is being quoted below 6%.

Meanwhile, we have again sent representation to all Banks Chairmen / Managing Directors requeting to give moratorium for period of one year in payment of interest and principal amount and waiver of interest sor this period. We wish to mention that the Bankers Club Tirupur, in association with Lead Bank "Canara Bank" organized a meeting on 15th June 2011 to discuss and submit a joint memorandum to Reserve Bank of India and Indian Banks Association (IBA) by giving as actual scenario of Tirupur Cluster.

We hope the steps taken by the Banks collecitvely will give desired measures from the RBI