AEPC seeks halt in NPA declaration, freezing EMIs for 1 year, Retail News, ET Retail

New Delhi : The Clothing Export Marketing Council (AEPC) has sought a suspension in declaration of non-accomplishing assets (NPA) and raising the moratorium time period on term financial loan EMIs to just one 12 months.

In a letter to the Commerce and Marketplace Minister Piyush Goyal, AEPC Chairman A. Sakthivel wrote: “Non-declaration of companies’ accounts as NPAs may possibly be extended for a minimum amount of just one 12 months as the deficiency of business coupled with fastened expenditures will make accounts as NPAs.

“Phrase financial loan EMIs ought to be postponed by just one 12 months and RBI may possibly lengthen the bill realization time period by 6 months in see of the liquidity issues.”

Even further, the council has questioned for extension of the Overseas Trade Coverage 2015-20 for a further time period of 6 months contemplating the disaster thanks to coronavirus pandemic, and a reintroduction of the MEIS plan for attire exporters with impact from March seven, 2019 and that it keep on further than March 31, 2020.

The reimbursement of Rebate of Point out and Central Taxes and Levies (RoSCTL) may possibly be offered as ‘Direct Money Transfer’, as in the circumstance of erstwhile ROSL and disadvantage, Sakthivel said.

He also questioned for extending the validity of all import devices like EPCG and Export Obligations Periods (EOP) by a further 12 months with no penalty.

Sakthivel also highlighted the need to have for extending the packing credit rating time period for present loans by 6 months. Interest Equalization Plan ought to be increased from three for each cent to five for each cent for all attire exporters and extended for a time period of two years up to March 31, 2022, he demanded.

“Restructuring of loans and present limitations have to not be handled as downgrading of account and there ought to be no penalty on cancellations. This will assist companies to evolve and come across approaches to float,” he said.

On easing out labour compliances, Sakthivel appealed the govt to add wages and salaries of the personnel for the lockdown time period and asked for acceptance to enable marketplace to defer payment of PF, ESI and electrical energy prices by 3 months.

“We are grateful for all the assist extended to minimise the adverse influence of the current scenario to attire exports and we are hopeful that these steps will, to a sure extent, assist the marketplace to get over the current liquidity disaster,” he said.