SME Times News Bureau | 03 Aug, 2020
Export Promotion Council (AEPC) has urged the government to increase the limit
of outstanding dues for MSMEs for availing loans under the Emergency Credit
Line Guarantee Scheme (ECLGS) to Rs 100 crore.
Thanking Finance Minister Nirmala Sitharaman for raising the outstanding loan
limit to Rs 50 crore, AEPC Chairman A. Sakthivel said it should be further
extended as financial relief to the wider industry impacted by the pandemic.
"I sincerely thank the Finance Minister for all her timely support. We
welcome the decision of the Government to increase the outstanding loan limit
from Rs 25 crore to Rs 50 crore and for raising the turnover criteria from Rs
100 crore to Rs 250 crore for availing ECLGS," Sakthivel said.
The ECLGS was announced in May with a provision of fully guaranteed additional
funding of up to Rs 3 lakh crore to eligible borrowers.
"While more than half of the targeted additional funding is yet to be
sanctioned, there are many medium scale industrialists who are bereft of the
special financial assistance. The need of the hour is to expand the outstanding
loan limit to Rs 100 crore and there should be no turnover criteria for
exporters," the AEPC Chairman said.
He noted that while the turnover of exporters may seem large due to foreign
exchange rate fluctuations, the thin margin on which the apparel exporters work
and the perishable nature of their products make them vulnerable to any changes
in export orders and delay in shipment, which has been clearly evident during
the ongoing crisis.