TEA appeals to Indian finance minister for FITL reimbursement installments

The Tiruppur Exporters Association (TEA) called on Finance Minister Nirmala Sitharaman to authorize the repayment of Interest Financed Term Loans (FITL) in six equal monthly installments to boost the recovery of micro, small and medium enterprises ( MSME) in the mesh cluster, which has not recovered due to the drop in exports and the re-emergence of COVID-19 in major European markets.

In a press release, TEA Chairman Raja M Shanmugham said the increase in cotton yarn prices and the irregular supply of yarn over the past four months had severely affected the knitwear industry, especially MSMEs, who find it difficult to support and exporting units have difficulty repaying the FITL.

The Reserve Bank of India (RBI) had decided to allow credit institutions to convert interest accrued on working capital facilities over the total deferment period of 6 months (i.e. March 1 to August 31, 2020) into a FITL, which will be fully reimbursed in the last fiscal year, ending March 31.

Another request has also been made to Sitharaman to advise RBI to allow the extension of the interest equalization program for an additional three years, which will help MSME exporting units calculate their costs accordingly and endeavor to take more export orders and maintain their activity.

Fibre2Fashion News Office (DS)

The Tiruppur Exporters Association has asked the Minister of Finance Nirmala Sitharaman to authorize the repayment of interest term loans financed in six equal monthly installments in order to stimulate the revival of micro, small and medium enterprises in the mesh cluster, which has not recovered due to declining exports and the re-emergence of COVID-19 in major European markets.

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