FICCI asks for return of Gold Metal Loan facility

FICCI, India’s industry body has prepared a list of hopeful reforms it would like to see in the forthcoming Union Budget 2015. This list presents six points of action to overcome the roadblocks which currently exist due to present policies.

In this, it has sought a reduction in customs duty on precious metal to less than 2 per cent, reports add. It also seeks a come back of the Gold Metal Loan (GML) facility which can encourage jewellery manufacturing, reports say.

The Gold Metal Loans according to FICCI were being extended by banks to jewellery manufacturers for over 15 years but was suspended in May 2013. This suspension led to interest rates rising by 300 percent on the borrowings, straining the jewellery manufacturing sector’s financials, reports say. The body ahs also asked for the establishment of world class 'shared' jewellery manufacturing hubs on PPP basis, to enable India to emerge as a global manufacturing centre, promoting jobs, reports add.