The All India Gem and Jewellery Domestic Council (GJC), which represents hundreds of thousands of small and MSME jewellers and allied trade constituents, have written to the Union Finance Minister (FM) and the Reserve Bank of India (RBI) seeking immediate financial assistance and banking related relief for the stressed gem, jewellery businesses impacted by the pandemic, as per a press release from the Council.
As several jewellers affected by multiple lockdowns were finding it difficult to repay loans, GJC has sought an extension of the moratorium on interest payments for six months.
GJC has urged FM and RBI to extend certain measures - Resolution Framework 2 and Resolution for MSMEs – including restructuring of loans and increasing the tenure of Gold Metal Loans (GML) from 180 days to 270 or 360 days among others.
Ashish Pethe, Chairman, GJC, said, "For almost two months of 2021, the domestic gems and jewellery industry and their stores/ shops were shut even while key festivals such as Gudi Padwa and Akshaya Tritiya was celebrated in lockdown for the second year in a row. We request the Government to consider our plea of offering financial aid, assistance and relief as has been given to several small businesses and MSMEs in other sectors. We also seek that the benefits that were given in 2020 should be extended even in 2021.”
Saiyam Mehra, Vice Chairman, GJC, added, “We urge Government to allow a moratorium on interest for six months to the stressed gem and jewellery sector, and allow six months to pay the accumulated interest in equated monthly instalments. This can be done by extending credit up to 40% of the total outstanding and should be made available to all borrowers, who have a Rs 500 crore limit and even if the overdue for 60 days or less. We feel that it will be appropriate for financiers to restructure the loans to the gem and jewellery sector by offering a one-time subsidy.”
Aruna Gaitonde, Editor in Chief of the Asian Bureau, Rough&Polished
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