Seeking immediate intervention from state and Central governments to help exporters overcome the crisis due to Covid-19 pandemic, the Federation of Indian Export Organisations (FIEO) southern region chairman Israr Ahmed today said the situation is grave and and factories across sectors will be forced to close down or stop production.
Ahmed was referring to the possibility of a large-scale cancellation of orders, supply chain disturbance, delayed or even non-payment of bills by buyers, which according to him would seriously affect the cash flow of all exporters.
The federation has asked for a host of relaxations from the Centre for the exporters to be able to face the adverse situation. These include extension of the realisation period from 270 days to 360 days, relaxation of NPA norms to accommodate delay in getting payment, as lack of business coupled with fixed cost will force units to close if NPA norms are not relaxed, faster clearance of credit applications by banks and extending the existing credit up to 25 per cent automatically.
The exporters body also urged the government that advance tax payment be differed at least till September 30, 2020.
"These measures will enable the exporters to be able to face off the current current crisis situation in order to meet the rebound of large orders expected after the present situation clears," Israr Ahmed said.