Synthetic, rayon cos give ₹1,000 cr to PM Cares, seek sops to boost exports

Our Bureau Mumbai | Updated on April 10, 2020 Published on April 10, 2020

Ronak Rughani, Chairman, SRTEPC

Unemployment a serious concern in man-made fibre textile segment

The man-made fibre textile industry has contributed ₹1,016 crore towards PM Cares Fund and those of chief ministers of various States, besides providing hospital facilities, food and personal protective equipment (PPE).

While contributing to the relief fund, the Synthetic and Rayon Textiles Export Promotion Council has sought a special economic package to make up for the huge losses incurred due to the cancellation of orders.

Ronak Rughani, Chairman, SRTEPC, said unemployment is a serious concern in the man-made fibre textile segment, which requires policy initiatives to resume production and bring stability after the havoc unleashed by Covid-19.

The industry needs special export incentive of 3 per cent on fibre and yarn, 4 per cent on fabric, 5 per cent on made-ups for at least six months or till the impact of the coronavirus subsides and global markets stabilise, he said.

Immediate needs

Madhu Sudhan Bhageria, Chairman and Managing Director, Filatex India, said the immediate requirement is to allow the manufacturing facilities to function with 50 per cent capacity, gradually lift the restrictions, and create an environment for hassle-free export of produce by different departments involved in the system.

Ensuring good banking system support by providing moratoriums, enhanced working capital facilities and ensuring all duty refunds from the government would go a long way to ease the life of man-made fibre players, he said.

The SRTEPC urged the government to correct the inverted duty structure under GST and include the entire man-made fibre textile value chain such as fibres, yarns, fabrics and made-ups under RoSCTL, MEIS and RoDTEP schemes.

It wants the government to extend one-year moratorium till next March 31 for repayment of loans to banks and NBFCs. It also also sought online processing of all documents needed for export shipments besides providing compensation for cancelled export orders.

Bangladesh model

Seeking relief like the one provided by Bangladesh, SRTEPC said the Bangladesh government is transferring three months’ salary directly to employees’ account through banks and the said amount is to be repaid by the companies at 2 per cent interest in 18 instalments in two years.

In view of force majeure situation, it said customs should authorise shipping lines to load export containers on the basis of verification of LEO (let export order) against specific shipping bill in the ICEGATE (Indian Customs Electronic Gateway) after CHA (customs house agent) gives required details through e-mail.

The period of export payment realisation should be increased, from 270 to 365 days, freight charges should be reduced to the pre-coronavirus level and availability of containers for export shipments should be ensured, it said.

Further, all pending dues under export promotion schemes should be released on an urgent basis or soft loan equivalent to the dues extended.

Textile companies should be allowed to restructure loans for one year without any additional charges by banks for provisioning and the RBI should relax NPA norms for six months so that no default will be termed as an NPA account, it said.

Published on April 10, 2020

A letter from the Editor

Dear Readers,

The coronavirus crisis has changed the world completely in the last few months. All of us have been locked into our homes, economic activity has come to a near standstill. Everyone has been impacted.

Including your favourite business and financial newspaper. Our printing and distribution chains have been severely disrupted across the country, leaving readers without access to newspapers. Newspaper delivery agents have also been unable to service their customers because of multiple restrictions.

In these difficult times, we, at BusinessLine have been working continuously every day so that you are informed about all the developments – whether on the pandemic, on policy responses, or the impact on the world of business and finance. Our team has been working round the clock to keep track of developments so that you – the reader – gets accurate information and actionable insights so that you can protect your jobs, businesses, finances and investments.

We are trying our best to ensure the newspaper reaches your hands every day. We have also ensured that even if your paper is not delivered, you can access BusinessLine in the e-paper format – just as it appears in print. Our website and apps too, are updated every minute, so that you can access the information you want anywhere, anytime.

But all this comes at a heavy cost. As you are aware, the lockdowns have wiped out almost all our entire revenue stream. Sustaining our quality journalism has become extremely challenging. That we have managed so far is thanks to your support. I thank all our subscribers – print and digital – for your support.

I appeal to all or readers to help us navigate these challenging times and help sustain one of the truly independent and credible voices in the world of Indian journalism. Doing so is easy. You can help us enormously simply by subscribing to our digital or e-paper editions. We offer several affordable subscription plans for our website, which includes Portfolio, our investment advisory section that offers rich investment advice from our highly qualified, in-house Research Bureau, the only such team in the Indian newspaper industry.

A little help from you can make a huge difference to the cause of quality journalism!

Support Quality Journalism
This article is closed for comments.
Please Email the Editor
You have read 1 out of 3 free articles for this week. For full access, please subscribe and get unlimited access to all sections.