In the wake of current situation in apparel and textile sector CMAI has made several request to the Government to safeguard the sector which includes wage subsidy, PF & ECIS contribution; interest subvention; working capital and some other areas.
1. WAGE SUBSIDY:
50% Wage Subsidy up to Rs. 5,000/- per month for 5 months from March 2020 to July 2020
PF & ESIC Contribution of Employer and Employee to be done by Government for 3 months (March to May 2020) for employee drawing wage not more than Rs. 15,000 with no cap on number of employees in the company.
2.INTEREST SUBVENTION: All Banks to offer Interest Subvention of 5% on total borrowings.
- WORKING CAPITAL: 25% additional Working Capital to be made available on a Mandatory Basis (not to the option of the Bank), subject to available Drawing Power on revised norms.
- MORATORIUM: While RBI has already allowed 3 months Moratorium on Terms Loans and Working Capital Loans, considering the long working capital cycle, this needs to be extended to 6 months. Further, Purchase Bills Discounting and Letter of Credits dues must also be given the 90 days Moratorium.
- SEBI: Must be instructed to provide relaxation in rules for Capital Raising for Listed companies. due to the sudden fall in stock prices. Further, SEBI must also provide a 90 days moratorium on Listed Debt Instruments which are used for financing Working Capital and Term Loans.
- ELECTRICITY: Waiver of Minimum Demand Load charges for 4 months from March 2020 to June 2020. State Government to waive Electricity Duties for 4 months.
- GST: Allow additional 90 days for depositing of GST Dues for March and 30 days for GST for May & June 2020.