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 Minister for MSMEs, Nitin Gadkari and Finance Minister Nirmala Sitharaman in Delhi. The meeting discussed the issues of MSMEs, which have to be addressed expediently for the growth of MSMEs in Tirupur.
During the meeting, TEA President Raja M Shanmugham said the requirement of credit rating as per BASEL III norms before getting loans from banks was not necessary as the rating does not reflect the true nature of the whole knitwear garment sector or the real performance of the units. Also, he referred to the repercussions in the employment side and repayment of loans to banks if the issues were not immediately resolved.