Industrialists in Coimbatore met Reserve Bank of India officials during an interactive session, urging them to recommend emergency credit support from public sector banks. They requested a 20 percent increase in working capital limits to tackle the severe crisis caused by rising raw material prices affecting manufacturing units.
Coimbatore: Industrialists in Coimbatore have directly urged Reserve Bank of India officials to instruct public sector banks to provide emergency credit assistance, as the manufacturing sector faces severe pressure due to escalating raw material prices.
An interactive session between RBI officials and industrialists was organized by the Indian Chamber of Commerce and Industry and the Southern India Engineering Manufacturers Association in Coimbatore. During this event, representatives from the Coimbatore Compressor Industrial Owners Association submitted a petition to RBI officials with several critical demands.
Speaking about the meeting, Ravindran, President of the Coimbatore Compressor Industrial Owners Association (COCIA), highlighted the severe challenges facing the manufacturing sector. "Production-based industrial units are confronting an extremely difficult crisis due to the rising prices of raw materials," he stated.
He explained that RBI officials participated in consultation meetings with industrialists on Saturday in Tiruppur and subsequently on Monday in Coimbatore. "We submitted a petition on behalf of our association and presented our concerns to the officials," Ravindran said.
The industrialists demanded that the Reserve Bank instruct public sector banks to implement an emergency credit support scheme to help the industry cope with the crisis caused by raw material price hikes.
They also requested a temporary 20 percent increase in the working capital ceiling, similar to the emergency credit support scheme implemented during the COVID-19 pandemic period. "Currently, the annual renewal process for loan schemes creates various difficulties for industrialists. Considering this, we have requested that the renewal process be changed to once every three years," Ravindran explained.
The petition also demanded extending the timeline for NPA (Non-Performing Asset) classification from three months to six months. Additionally, they requested the complete elimination of processing fees charged when transferring loans from one bank to another.
"We have submitted these demands to the RBI officials through our petition and are confident that appropriate action will be taken," Ravindran concluded.
The meeting reflects the growing concerns of Coimbatore's manufacturing sector, which forms a significant part of the city's industrial economy, particularly in the compressor manufacturing segment that serves both domestic and international markets.
An interactive session between RBI officials and industrialists was organized by the Indian Chamber of Commerce and Industry and the Southern India Engineering Manufacturers Association in Coimbatore. During this event, representatives from the Coimbatore Compressor Industrial Owners Association submitted a petition to RBI officials with several critical demands.
Speaking about the meeting, Ravindran, President of the Coimbatore Compressor Industrial Owners Association (COCIA), highlighted the severe challenges facing the manufacturing sector. "Production-based industrial units are confronting an extremely difficult crisis due to the rising prices of raw materials," he stated.
He explained that RBI officials participated in consultation meetings with industrialists on Saturday in Tiruppur and subsequently on Monday in Coimbatore. "We submitted a petition on behalf of our association and presented our concerns to the officials," Ravindran said.
The industrialists demanded that the Reserve Bank instruct public sector banks to implement an emergency credit support scheme to help the industry cope with the crisis caused by raw material price hikes.
They also requested a temporary 20 percent increase in the working capital ceiling, similar to the emergency credit support scheme implemented during the COVID-19 pandemic period. "Currently, the annual renewal process for loan schemes creates various difficulties for industrialists. Considering this, we have requested that the renewal process be changed to once every three years," Ravindran explained.
The petition also demanded extending the timeline for NPA (Non-Performing Asset) classification from three months to six months. Additionally, they requested the complete elimination of processing fees charged when transferring loans from one bank to another.
"We have submitted these demands to the RBI officials through our petition and are confident that appropriate action will be taken," Ravindran concluded.
The meeting reflects the growing concerns of Coimbatore's manufacturing sector, which forms a significant part of the city's industrial economy, particularly in the compressor manufacturing segment that serves both domestic and international markets.