Stating that Gujarat’s deprived of funds MSMEs are “facing survival issues” due to restrictions imposed by the Covid pandemic, the Gujarat Chamber of Commerce and Industry (GCCI) wrote letters to the Minister of Commerce on Monday. Union Finances, Nirmala Sitharaman, and the Minister of the Union of MSMEs, Nitin Gadkari. , looking for a low rate loan for small players.
“Last year, when similar conditions existed, additional working capital financing of 20% of the outstanding credit was provided in the form of a term loan at a concessional interest rate without any collateral. nor collateral. We humbly request that also this year, additional working capital financing of 20% of outstanding credit as at March 31, 2021, beyond the limit sanctioned last year, be provided, ”said Natubhai Patel, president of GCCI. in the letter.
“Due to the restrictions imposed under the partial foreclosure, the inflow of funds is very less and therefore this type of loan on favorable terms will be very effective and useful,” the letter adds.
A number of manufacturing units in Gujarat, particularly in the MSME sector, have been closed since industrial oxygen was diverted for medical purposes. Apart from that, GCCI officials said a number of smaller units were operating with minimal capacity and faced low demand and high cost of raw materials.
In addition to the loan on favorable terms, GCCI also told Union ministers that it was “necessary to extend the number of days for an invoice to be updated from 90 to 150 days, which will allow the cycle of working capital to run smoothly ”.