Industry players seek extension of loan moratorium

Coimbatore: With no signs of revival in the industrial sector and production and sales bordering around 30% of the usual size, industrialists have urged that the loan moratorium ending next month be extended.

Apart from this, the loans given under the emergency credit line guarantee (ECLG) scheme also be combined with the existing loans and this be restructured to be paid in instalments over three to four years.

There is uncertainty in the industrial scenario with payments getting delayed and raw materials becoming difficult to source, said S Surulivel, president of Railway Suppliers Association (RASA) and a coordinator of Federation of Coimbatore Industrial Associations (Focia). “The initial loan moratorium announced for the industry would end on August 31. Due to the pandemic crisis, we would be unable to pay our dues,” he said.

He sought that the moratorium be extended by another four months.

Earlier, representatives of the Joint Council of the Industrial Associations of Coimbatore had appealed to the Union finance minister Nirmala Sitharaman that the loan moratorium be extended till March 31, 2021. In a recent online meeting on the impact of the lockdown on MSMEs, representatives said if they take up paying the dues for the loans they get now, they wouldn’t be able to use it for industry operations, and to create demand.

However, a section of industrialists said they had to wait till the month-end to see whether there were signs of revival in the situation, before seeking a moratorium. “We are wary whether banks would levy accrued interest for the moratorium period,” said an industry representative.