FIEO for relaxation in NPA norms, ITC refund

Hyderabad: Federation of Indian Export Organisations (FIEO) has requested the Centre and state governments for their immediate intervention in helping exporters overcoming the disturbance caused by the coronavirus outbreak.

FIEO's Southern Region Chairman Israr Ahmed said: The situation is grave and many factories across all the sectors are being forced to slow down or even stop production. While informing that the industries are trying to provide all possible help to the employees and co-operate with the government for containing this serious issue. There is possibility of large scale cancellation of orders, supply chain disturbance, delayed or even non-payment by the buyers, etc., which will very seriously affect the cash flow of all exporters."

This put the export sector especially MSMEs in a very serious spot. Israr requested the central government for taking measures to relax NPA norms. The other measures include extend export realization period from 270 to 360 days,

He said: "Relaxation of NPA norms to accommodate delay in getting payment, as lack of business coupled with fixed cost will force units to close unless NPA norms are not relaxed. Direct banks to facilitate faster clearance of credit applications and existing credit may extend up to 25 per cent automatically. All ITC/IGST refunds may be provided to exporters instantly. Interest equalization may extended to all sectors at five per cent. The government may consider extending the PMRPY scheme incentive of 8.33 per cent for all old and new employees for a period of six months till the exporters tide over the crisis. ESI payments maybe deferred for a period of three months.