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Thiruppur garment companyThe sanghis are proud enough to entice the innocent investors that after Covid-19 pandemic the global investment would be easily channelized and redirected from china to India thereby it will boost Thiruppur’s present turnover from Rs.26000 crore to Rs.100000 crore.

Our prime minister Modi has reported that at such scenario not less than 1000 companies would migrate to other countries and to the least India will definitely capture 300 companies.

The Sanghis typical of their rituals, shout bursting out their lungs that China will soon disappear from face of earth, losing its super power status and eventually India will capture that position. But it is paradoxical to accept at present situation that India overtakes china in Covid-19 spread.

At this juncture the media overshadows the present Thiruppur’s plight lying that the garments companies are resurrecting back with full swing. Few companies are busy completing their left-over work and few are preparing just sample pieces for the next season. Because of continuing lockdown resulting the suspension of air travel, Thiruppur export industries are hamstrung for want of spare parts and raw materials from overseas viz China, Korea, Italy and Taiwan. They are struggling to send even the sample pieces.

Despite the present industrial sufferings, the sanghis are falsely assure the public that 20 lakh crores will be bestowed from the sky. But in reality, the banking officials are lamenting that till date they did not receive any official notification in this regard from the top management.

On the other side, the auditor will sign the bank loan application pertinent to GST implication and TDS duly collected and remitted to the government for the period 2019-2020 only.

As a snowball effect due to Covid-19 pandemic, Thiruppur garment industries are severely hit due to GST and TDS. On one side, the big rich industry owners can survive the present-day impact, the small industries are financially impaired resulting economic chaos and global unemployment. Their sales will be affected. The existing credit period will be further extended by few more months.

Even though the banks are ready to provide loan, the burden of interest becomes more heavier with interest due being cumulated to further interest again affecting the working capital and day to day cash flow.

Adding fuel to the fire, the Thiruppur corporation has enhanced the property tax by 100% so that building owners are trying to increase home rental and company rentals.

Resulting the increase in price of petrol/diesel eventually resulting hike in all products and services. Considering this helpless situation, we request to 

1) Cancel the GST penalty for small companies

2) Allow the GST tax at a fixed rate of 5% for at least one-year period

3) Waive the interest on old loan for a period of 6 months

4) Increase the incentives for exports to 10%

5) Creating employment opportunities to increase the purchasing power of the people in order to enrich the domestic market

6) Establishing government factories to produce Raw Materials and Spare Parts for garment companies locally

7) Making free trade agreements (FTAs) with foreign governments

8) Facilitating loans to entrepreneurs at low interest rates

The Central and State Governments must fulfill such minimum demands. All factory owners must work together to pressure governments to meet these demands.

The existing right wing support TEA (Thiruppur Exporters Association) and the left wing support TEAMA (Thiruppur Exporters and Manufacturers Association) should join together to come out of this crisis.

Written by Dharmar, Thiruppur

Translated by Prema Praba

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