: FIEO seeks Rs 30,000 cr worth interest free working capital term loans to exporters from govt #FinanceIndia #StockMarketNEWS FIEO seeks Rs 30,000 cr worth interest free working capital term loans to

@StockMarketNEWS Wed 15 Apr, 2020

Posted in: #FinanceIndia #StockMarketNEWS

FIEO seeks Rs 30,000 cr worth interest free working capital term loans to exporters from govt #FinanceIndia #StockMarketNEWS
FIEO seeks Rs 30,000 cr worth interest free working capital term loans to exporters from govt New Delhi, Apr 9 (KNN) Federation of Indian Export Organisations (FIEO) has sought Rs 30,000 crore worth of interest-free working capital term loan to exporting companies for easing their working capital liquidity issues.

In a letter sent to Prime Minister Narendra Modi by FIEO President Sharad Kumar Saraf has said that the countrys exports will take an unprecedented hit in these challenging times with the sector facing over 50 per cent cancellation of orders.

"The worst hit are the lifestyle products such as leather, carpets, handicrafts and apparels which are having over 75 per cent cancellations. This will also put pressure on current account deficit as overseas remittance will decline and so will be FDI/FIIs inflow in the country," he added.

FIEO said that the burden on the government would only be to the tune of Rs 1,974 crore.

The letter further ready that the loan should cover 6 months gross salary and wages, rent and electricity charges and should be given without additional collateral or paperwork to all industrial units who have a clean record with the bank before lockdown. The repayment should be in 18 equal installments after 6 months initial moratorium, the letter to the PM mentions.

The exporters body has also sought EPF and ESIC waiver for three months to support labour Intensive sectors that are in extreme pressure to pay wages, but do not have liquidity or cash flow to even pay the EPF and ESIC.

FIEO has also urged the government to provide subsidy on air shipments and lowering of CONCOR charges.

"Provide 50 per cent freight subsidy on air freight to encourage exporters to use air freight to compensate for time loss. CONCOR may also be asked to reduce charges in view of challenging times faced by exporters," letter read.

The exporter body also sought reduction in GST rates particularly on Hotels, Aviation and Travel and Tour operators who are going through the worst phase. It said that GST rates for these sectors should be reduced by 50 per cent for the next 12 months