In its proposal for interest-free working capital loan for exporters, FIEO said that the burden on the government would only be to the tune of Rs 1,974 crore while the benefits to exporters would be immense and help their operations during the current difficult period.

It said a working capital loan could cover 6 months gross salary and wages, rent and electricity charges and should be given without additional collateral or paperwork to all industrial units who have a clean record with the bank before lockdown. The repayment should be in 18 equal installments after 6 months initial moratorium, the letter to the PM mentions.

The exporters body has also sought EPF and ESIC waiver for three months to support labour Intensive sectors that are in extreme pressure to pay wages, but do not have liquidity or cash flow to even pay the EPF and ESIC. Such units, Mr Saraf informed the PM in his letter, would close down unless support from the Government came in.

To allow exporters faster shipments of goods once the markets open up, FIEO has also urged the government to provide subsidy on air shipments and lowering of CONCOR charges. “Provide 50 per cent freight subsidy on air freight to encourage exporters to use air freight to compensate for time loss. CONCOR may also be asked to reduce charges in view of challenging times faced by exporters,” the FIEO letter to PM said.