FIASWI seeks no legal suit against entrepreneurs
The Federation of Indian Art Silk Weaving Industry (FIASWI) recently urged the government not to initiate legal action, under the Disaster Management Act, 2005, against cash-starved textile entrepreneurs who are unable to pay wages to their workers for April.
The Federation of Indian Art Silk Weaving Industry (FIASWI) recently urged the government not to initiate legal action, under the Disaster Management Act, 2005, against cash-starved textile entrepreneurs who are unable to pay wages to their workers for April. The federation wrote a letter to Prime Minister Narendra Modi highlighting the issue.
Man-made textile (MMF) sector businessmen are reeling under non-realisation of payments following the extended lockdown, and as a result, are unable to pay the labourers in April, FIASWI said.
FIASWI has sought soft loans and financial stimulus package for the textile sector to increase liquidity and meet the working capital requirements so that workers can be paid wages. It has also sought a wage contribution of 50 per cent from the central and state governments for textile workers, according to a report in a top English-language daily.
FIASWI chairman Bharat Gandhi said FIASWI has requested the government to increase working capital ad hoc loans by 30 per cent and providing 5 per cent interest subvention, without asking for collateral security.
About 1,360 applications under Technology Upgradation Fund (TUF) scheme are pending for the subsidy of ?360 crore. The government should release 75 per cent subsidy amount to infuse liquidity in the industry, Gandhi added.
