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Exporters want extension of promotion schemes amid coronavirus spread

Collateral free lending up to Rs 2 crore with the collateral requirement capped at 35-40 per cent for lending beyond Rs 2 crore, also feature in the list of demands

Subhayan Chakraborty  |  New Delhi 

exports, ships
FIEO has requested the government to ensure that banks delay the declaring of companies’ accounts as NPAs for one year as the lack of business coupled with business expenses remaining fixed will make many accounts NPAs | File photo

Two months after the started decimating the global economy, have urgently demanded extension of all export promotion schemes, relaxed non-performing asset (NPAs) norms, and faster, easier credit disbursement by banks.

In their communication to the finance and commerce ministries, the Federation of Indian Export Organisations (FIEO) has said near a lockdown and quarantine in many advanced economies has given a jolt to demand for Indian goods. With recession looming in many countries, fear major cancellation of orders as buyers ask to hold back shipments till further instructions, said Sharad Kumar Saraf, President,

“Even in cases where Indian are adhering to the terms of contract, the force majeure clause is likely to be invoked by buyers to deny claim/liability raised by exporter," he said.

has requested the government to ensure that banks delay the declaring of companies’ accounts as for one year as the lack of business coupled with business expenses remaining fixed will make many accounts It also wants existing working credit limits of exporters with the banks to be automatically enhanced by 25 per cent. Collateral free lending up to Rs 2 crore with the collateral requirement capped at 35-40 per cent for lending beyond Rs 2 crore, also feature in the list of demands.

First Published: Thu, March 19 2020. 23:16 IST
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