Raja M Shanmugham
President, Tiruppur Exporters' Association

We congratulate Thiru.M.K.Stalin for steering a victory in Tamil Nadu Assembly election and assuming the position as Chief Minister of Tamil Nadu and we are confident that with his experience coupled with administrative skill, the Chief Minister could guide his ministry efficiently to perform well to the satisfaction of all walks of life in Tamil Nadu. As the newly formed Government has been taking efforts expediently to address the issues concerned in all areas, the Chief Minister is emphasizing in all forums for inclusive growth and spread over whole Tamil Nadu. We firmly believe that Tirupur Knitwear Sector, a major forex earner in Tamil Nadu about 13%, will be given priority in addressing the issues stunting the growth of Industry.

Due to significant spread of Second wave of COVID-19 Pandemic, our State Government announced lockdown for the period 10th May 2021 to 7th June 2021 mainly to break the COVID chain and combat the spread of pandemic, as like being followed by all countries globally. To support the Tamil Nadu State Government in controlling the spread of Pandemic, from our end also, we have to shut down the operation during this lockdown period.

The Hon'ble Chief Minister in the Virtual Meeting held on 19th May 2021 with all Trade Associations appealed to make contribution for the COVID Relief Fund and as I informed in the meeting, during the visit of Hon’ble Chief Minister to Tirupur the very next day, on behalf of our Association, we handed over a cheque for the amount of Rs. 50 Lakhs to the Hon’ble Chief Minister and we have been also supporting to our District Administration to control the spread of COVID-19 Pandemic in Tirupur Cluster.

During the second wave, India was “isolated” as competing countries did not impose blanket lockdowns and buyers in EU and US have opened their stores. In view of this, the excuse of lockdown for the delay in delivery of orders were not acceptable to many brands. Few buyers have cancelled orders and others have asked exporters to airlift the orders at our own cost.

Since lockdown, we have been representing to the Hon’ble Union Minister of Finance to announce the financial stimulus measures to mitigate the impact of second wave of COVID-19 Pandemic and thereafter, on account of the disruptions caused by the second wave of COVID 19 Pandemic to businesses across various sectors of the economy, Ministry of Finance issued a Press Release on 30th May 2021 stating that Government has further enlarged the scope of Emergency Credit Line Guarantee Scheme. Borrowers who are eligible for restructuring as per RBI guidelines of May 05, 2021 and had availed loans under ECLGS 1.0 of overall tenure of four years comprising of repayment of interest only during the first 12 months with repayment of principal and interest in 36 months thereafter will now be able to avail a tenure of five years for their ECLGS loan i.e. repayment of interest only for the first 24 months with repayment of principal and interest in 36 months thereafter. Additional ECLGS assistance of up to 10% of the outstanding as on February 29, 2020 to borrowers covered under ECLGS 1.0, in tandem with restructuring as per RBI guidelines of May 05, 2021. We have been representing to the Hon’ble Finance Minister to permit those MSMEs also to avail 10% Additional Credit Assistance without opting for restructuring their account and awaiting for the positive reply.

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