GJC writes to FM, RBI seeking relief from financial stress

NEW DELHI: The All India Gem And Jewellery Domestic Council (GJC) has written to Union Finance Minister Nirmala Sitharaman and the Reserve Bank of India (RBI) seeking immediate financial assistance and banking related relief for the stressed gem, jewellery and allied businesses post the devastating second wave of the Covid pandemic.

The GJC, which represents lakhs of small and MSME jewellers and allied trade constituents in the country, cited that the K.V. Kamath-led expert committee constituted by the RBI on August 7, 2020 had included the gem and jewellery sector among the stressed industries in its report submitted on September 4, 2020.

As several jewellers affected by the multiple lockdowns are finding it difficult to repay their loans, the GJC has sought an extension of the moratorium on interest payments for the stressed gem and jewellery sector for a period of six months.

The GJC has urged the Finance Minister and the RBI to extend certain measures – the Resolution Framework 2 and Resolution for MSMEs – to alleviate the uncertainties and stress facing the jewellery business (mostly small businesses and MSMEs).

The GJC requested the government for assistance to restructure the loans given to the gem and jewellery businesses by offering one-time subsidy. The GJC also urged the government to increase the tenure of gold metal loans (GML) from 180 days to 270 (as was done in 2020) or 360 days.

The GJC said the gem and jewellery sector is one of the most affected industries with a potential loss of job of unskilled and poor goldsmiths. The industry is burdened by huge inventory costs, and higher fixed overheads, including interest costs and rentals, among others, it said.

GJC Chairman Ashish Pethe 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 were celebrated amid lockdown for the second year in a row. (IANS)

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