FICCI pitches for reinstating the gold metal loan facility

Industry body FICCI has demanded re-introduction of Gold Metal Loan (GML) facility to boost jewellery manufacturing.
It also demanded a reduction in the customs duty on precious metal to less than 2 per cent.
In its budget wish-list, FICCI Gems and Jewelry Committee has presented six action points outlining the difficulties arising from existing policies.
Banks used to extend Gold metal loans to those who manufacture jewellery.
"The GML loan facility which have been promoted by Banks for over 15 years, was abruptly suspended in May 2013 leading to an increase in the interest rates on the borrowings by 300 per cent, putting the entire jewellery manufacturing industry in a financial stress," FICCI Gems and Jewelry Committee (GJC) Chairamn Mehul Choksi said.

The industry body has also demanded to set-up world class 'shared' jewellery manufacturing hubs on PPP basis with the best equipment being made available to the karigars & small units on rental basis.
"With Government support, if we were to set up manufacturing hubs, we will be able to make India into a global manufacturing centre, create millions of new jobs, and provide the best finished products to the world from India," Choksi added.