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SIMA hails revision of MSME definition in stimulus package

By
Fibre2Fashion
Published
May 14, 2020
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The Southern India Mills’ Association (SIMA) has thanked the government for revising the definition of micro, small and medium enterprises (MSME) in the stimulus package—a long pending demand by the industry, which the association thinks will greatly benefit over 60 percent of companies across the textile value chain, especially the garment and made-ups units.



In a press release, SIMA chairman Ashwin Chandran hoped the government would consider the industry’s demand to extend the moratorium for repayment of loans and interest already extended for three months from March 1 for another 10 months, i.e., up to March 31, 2021.

He also hoped that the government would also extend 25 per cent additional working capital without any collateral or margin money for all categories of accounts other than MSMEs also in the next financial relief package to be announced shortly.

He expected the government to soon announce a special package for boosting exports for all textiles and clothing products, including cotton yarn and fabric, to grab emerging opportunities and also consuming the surplus cotton that might significantly affect cotton farmers.

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