Tirupur : Tirupur MP Sathyabama has penned six letters to Minister for Textiles, Smriti Irani.
Tirupur : Tirupur MP Sathyabama has penned six letters to Minister for Textiles, Smriti Irani on the following issues:
* Restore Erode Handloom Entrepreneurs Association
* GST exemption for Bhavani Jamakkalam
* Device suitable scheme instead of following Basel III norms for MSMEs, extend the NPA classification period for MSMEs for the period of one more year
* Request to Permit for IGST Refund Claims of Exporters Who Imports Inputs under Advance Authorization Scheme
* Facilitate the Disposal of MUDRA loan for power loom welfare development
In the first letter regarding restoring Erode Handloom Entrepreneurs Association, the MP mentioned that "In the recent order of the office of the Development Commissioner for Handlooms, New Delhi (Order No.1/2/2016-DCH/P&S Dated.18.04.2018) the Handloom weavers Entrepreneurs were removed from the eligible beneficiaries and henceforth cannot procure yarn under the welfare schemes. I request to restore and include the Handloom Weavers Entrepreneurs in the eligible beneficiaries list, so that 7000 weavers of the Erode handloom Entrepreneurs will thrive in their business".
The letter also urged to provide weaver identity cards to all Handloom weavers and include them under the Direct Benefit Transfer (DBT) Scheme to avail all the benefits of the Scheme directly to the weavers.
In the second letter, the MP stressed on exempting GST for Bhavani Jamakkalams and Handloom Carpets.
"Bhavani Jamakkalam, a unique hand woven blanket was recognized and provided with geographical indication in 2005. Produced by the traditional handloom weavers at Bhavani and Anthiyur, the Bhavani Jamakkalam is a 300-year-old traditional cottage industry providing job and subsistence pattern for several thousand handloom weavers of this region.
During the pre-GST times, Bhavani Jamakkalam was exempted from all taxes. But in the GST regime, the Government had initially imposed 12% GST on Carpets including Bhavani Jamakkalam. Representations were made by Tiruppur MP SathyaBama to the Union Textile Minister through letter and in person.Following which, the Committee decided to reduce GST on “Bhavani Jamakkalam” from 12% to 5%.
"A decade back, about 20,000 families were into this business but presently only 6,000 are surviving in this traditional trade. This needs to be recognized and exempted from the ambit of GST. As reducing GST rate from 12% to 5% will not help the weavers much, I request the Ministry to kindly take necessary steps to include the Hand woven Bhavani Jamakkalam in the GST exempted list", ", the MP noted in his letter.
In the third letter, the MP wrote "The Tirupur Exporters Association “TEA” comprising of 1063 members is striving for the development of knitwear exports and Tirupur town. Out of the total members, 80% of the units are in MSMEs and are doing knitwear exports to more than 100 countries. They have certain specific issues related to NPA and GST related problems. Due to delay in getting ROSL amount, duty drawback and GST refund, the exporting units are unable to pay the dues to banks".
The letter further added that "MSMEs are struggling and are not in a position to repay the loan to banks due to blockage of receivables, through ROSL, GST and drawback from the government. The total receivables pending are to the tune of Rs.1200 crore to Tirupur knitwear exporting units".
"The Basel III norms may be applicable for corporate companies and it is too difficult for MSMEs to follow the same. I wish to point out that the delay in payment could have been avoided, if the government had disbursed the receivables on time. Therefore, the delay in repayment of dues is entirely not the fault of MSMEs", the MP noted.
"Therefore, I request the government to device a suitable scheme instead of following Basel III norms, exclusively for MSMEs, and advice the banks to consider the government receivables. And, not to classify the units as SMA-I/SMA-II/NPAs and protect MSMEs. NPA classification period for MSMEs from 90 days to 180 days and I request that it could be extended to another one year or till the time MSMEs are stabilized under the GST regime", MP Sathyabama urged.
In the fourth letter, the MP requested to permit for IGST refund claims of exporters who import inputs under Advance Authorization Scheme – Allow Online Filing of EGM to GST Refund.
"Tirupur is the fastest growing City having largest textile cluster which accounts for 90% of the country’s cotton knitwear exports. Within three decades, the knitwear exports from Tirupur has grown up by leaps and bounds, from less than Rs.10 crores in 1984 to about Rs.30,000 crores in 2017-18. The achievement is from three million to three billion in three decades.
"Despite the permission given for imports made under EPCG scheme, the relief has not been extended for imports (like fabrics) made under Advance Authorization scheme. Large number of garment exporters in Tirupur import specialty fabrics are under Advance Authorization scheme. Therefore, I request the Ministry to kindly permit IGST refund claims of exporters who imports inputs under Advance Authorization scheme.
Presently, the exporting units are manually filing of EGM and instead of that online option has to be implemented for getting GST refund automatically in hassle free manner", the letter said.
In the fifth letter, MP Sathyabama emphasised on facilitating the disposal of MUDRA loan for power loom welfare development.
"In Erode district, about 5000 power loom units with 1 Lakh workers are getting job on a daily basis. Power loom sector is significant after agriculture. It also provides indirect job opportunities for over three lakhs people. (PMMY) MUDRA Loan for our power loom industry with subsidy amount of Rs.1 lakhs is well received. The announcement is a very good encouragement for us to continue with our power loom sector.
But in Erode district, most of the banks are not accepting the loan application under MUDRA scheme. For instance, 65 members of our power loom association applied for MUDRA loan through online and after long process and follow-ups only two members were provided with MUDRA Loan. Complaints were raised at the time of meeting held with MSME team. In our Erode district, nearly 5000 power loom owners, applied for MUDRA loan. But till now only 12 owners have been approved.
Citing some frivolous reasons, the bank managers/officials reject the MUDRA loan for the members of our power loom sector. Therefore, I request the Ministry to kindly consider our request with sympathy and humility and issue necessary directions to the banks to provide MUDRA loan to members of power loom sector, without any hindrance", the letter noted.
In the sixth letter, the MP highlighted on the release of backlog subsidy of Rs.8,000 crores under TUFS and to reduce the hank yarn obligation from 40% to 10%.
"The Indian textile industry is the second largest employment provider providing jobs to over 120 million people. If right policies are implemented, the industry has a potential to create new jobs for another 30 million people by 2025.
Various schemes like extension of TUF Scheme for 13th five year plan with a budget allocation of Rs.17822 crores, Rs.6006 crores special package to boost garment exports and Scheme for Capacity Building (SAMARTH) with an allocation of Rs.1300 crores, announced by the Government are highly welcomed by the industry.
The textile industry is currently facing severe financial crisis due to the huge backlog in the release of Technology Upgradation Fund Scheme subsidy amounting to around Rs.8,000 crores (committed liabilities under various TUF Schemes and A-TUF Scheme).
In addition, 40% hank yarn obligation imposed on the spinning mills that cater to the needs of the power loom sector is causing hardship and posing heavy financial burden.
I therefore, request the Hon’ble Minister to take necessary steps for the immediate release of backlog subsidy amount of Rs.8,000 crores under the Technology Upgradation Fund Scheme and to reduce the hank yarn obligation from 40% to 10%", MP Sathyabama requested to the Ministry of textiles.