Coimbatore: SIMA has appealed to the PM for a one year moratorium, for repayment of principal and interest on loans.
Coimbatore: SIMA has appealed to the PM for a one year moratorium, for repayment of principal and interest on loans.
Appealing to the PM, they noted, "The Coronavirus (COVID-19) is affecting every sphere of life including manufacturing activities, businesses, etc., across the globe and India is also not spared from the panic situation. The textile industry predominantly employs migrant workers from different States and also a large population comes for work, from far off places using public transport.
Under the current scenario, especially the constant preventive measures being taken and awareness created by the Government to fight against the pandemic, majority of the workers are not reporting for work and the migrant workers are also returning to their native places.
As the situation is likely to intensify and result in mass stoppage of production in the industry. With the expected steep reduction in demand, due to sudden stoppage of exports / imports and also domestic sales, due to the closure of malls and retail showrooms, the industry is likely to face unprecedented and severe losses and needs immediate financial relief to mitigate the crisis.
Therefore, the textile industry, being labour and capital intensive, needs immediate help to tide over the worst ever crisis being faced by the industry."
In a Press Release issued here today, Ashwin Chandran, Chairman, The Southern India Mills’ Association (SIMA) informed that the Association has sent a representation to the Prime Minister appealing to him, to mandate the banks to provide a moratorium of one year from Apr 1, 2020 to Mar 31, 2021 for repayment of principal and interest amount to the banks to enable the Indian textiles and clothing industry to tide over the crisis.
He stated that the country has never witnessed such a crisis situation before and therefore, the textiles and clothing industry requires a helping hand from the Government through this measure. Such a relief, if extended, will go a long way to help the industry to tide over the crisis and ensure the survival, said Ashwin.
Disclaimer: This news is carried based on a press release from the organisation.