Coimbatore : Tirupur Exporters’ Association (TEA) Tuesday appealed to a group of union ministers, to insulate MSMEs from following Basel III norms.

The appeal was made at a meeting chaired by Union MSME Minister Nitin Gadkari,and Finance Minister, Nirmala Sitharaman at Delhi to discuss the issues of MSMEs which need to be addressed urgently for the growth of Tirupur MSMEs.

During the meeting, Raja Shanugham categorically mentioned that the requirement of credit rating insisted under BASEL III norms before getting loans from banks are not at all necessary as the rating is not reflecting the true nature of the whole Knitwear Garment Sector and the real performance of the respective unit.

He also requested for restructuring of the unit two times rather than one time, considering the seasonal business nature of knitwear garment units, a TEA release said here.

While deliberating on the NPA classification, he requested the government to take into account 180 days period against the existing 90 days now, it said..

Raja Shanmugham also pointed out the repercussions in the employment side including repayment of loans to banks if the issues are not immediately resolved.

He also pleaded for the announcement of an alternative scheme in place of MEIS to enhance the competitiveness of the beleaguered knitwear garment exporting MSMEs in Tirupur and sustain them in the global market.

The ministers assured him that they will address the issues and work for the growth of MSMEs, the release said.

Minister of State for Finance Anurag Singh Thakur, and MSME Secretary Dr. Arun Kumar Panda, were also in the meeting.