Extend ECLGS benefits to retailers: RAI urges govt

New Delhi: Retailers Association of India (RAI) on Wednesday asked Finance Minister Nirmala Sitharaman to extend benefits of emergency credit line guarantee scheme to retailers while seeking a moratorium on principal and interest of all loans for up to 6 months stating that curbs due to the second wave of Covid-19 have crippled the sector.

Putting forward a series of demands, RAI said around 80 per cent of the retail stores are closed due to various restrictions across states and almost Rs 75,000 crore could turn NPA if urgent measures to ease the working capital challenges are not taken by the Reserve Bank and the Centre. "Retail businesses across the country are among the worst hit as several states have mandated lockdown of malls and shopping complexes where most modern retailers operate. The industry is finding it hard to survive through the immense financial stress that is threatening to derail businesses," RAI said in a statement.

In a submission to the Ministry of Finance, RAI said it has recommended that the ministry and the Reserve Bank of India step in to bring some relief to the mounting stress on the retail businesses in the wake of the second wave of the pandemic.

It asked the ministry to extend benefits of emergency credit line guarantee scheme (ECLGS) 3.0 to retail companies as well, saying the availability of additional funding facility to the eligible retail business will go a long way in contributing to their revival, protecting jobs, and creating a conducive environment for employment generation.

Seeking a moratorium on principal and interest on loans for 6 months, RAI said the retail sector "represents an investment of Rs 2,50,000 crore and almost Rs 75,000 crore could turn NPA if urgent measures to ease the working capital challenges are not taken by the Reserve Bank of India and the Government of India."