Home / Knowledge / News / Textiles / Indian govt working on restructuring loans to textile sector
Indian govt working on restructuring loans to textile sector
31
Oct '11
The Government of India is working on a proposal to restructure loans given to the textile sector, which are to the extent of Rs. 40-50 billion. The proposal does not include debt waiver.

The textiles sector is currently facing a slowdown and according to the Ministry of Textiles, the demand for cotton fabric has declined by around 19 percent year-on-year, while a dip of 15 percent has been observed in demand for cotton yarn, and a fall of 5 percent has been noted in demand for blended yarn.

To enable the sector ride through the slowdown, the Ministry of Textiles has proposed a four-pronged strategy. It includes resetting the interest rate on the debt and converting working capital into fresh debt, which will cost Rs. 8.35 billion.

On the suggestion of companies, the Ministry is also considering a two-year freeze on repayment of restructured debt as well as a 4.5 percent interest subsidy on packaging credit.

The issue of loan restructuring has already been discussed with the Ministry of Finance and a detailed proposal is expected to be submitted by the Ministry of Textiles in the coming days.


Fibre2fashion News Desk - India


Must ReadView All

Courtesy: Raymond

Apparel/Garments | On 28th Jun 2017

Raymond plans to invest Rs 1,400 crore in Amravati plant

Raymond, Indian textiles and apparel major, has decided to invest Rs...

Textiles | On 28th Jun 2017

GST and textiles industry: Analysis and opinion

The Goods and Services Tax (GST) is at long last all set to be rolled ...

Textiles | On 28th Jun 2017

India probing dumping of polyester yarn by China

Indian government is probing anti-dumping allegations against a...

Interviews View All

Nitin Bhatia
Trend Arrest

Setting up a brand for online selling is easy, but running the brand is not

Vidhyaa Shankar. S
A Ganapathi Chettiar

'The usage of knits is getting into the boundaries of woven fabrics'

Yash Maniyar
Rekha Maniyar

Indian fashion market is growing at a staggering rate

Marten Alkhagen
Swerea IVF AB

Marten Alkhagen, Senior Scientist - Nonwoven and Technical Textiles of...

Eamonn Tighe
Nature Works LLC

Eamonn Tighe, Fibres and Nonwovens - Business Development Manager of...

Silke Brand-Kirsch
Schlegel und Partner

Silke Brand-Kirsch, executive partner of Schlegel und Partner, a leading...

Robert Brunner
Devereux

Golfwear and menswear brand Devereux is set for greener pastures. Robert...

Aditi Somani
Aditi Somani

Aditi Somani specialises in luxury fusion wear with international cuts and ...

Igor Chapurin
Chapurin

"Now we can see the Russian trend in international fashion. And Russian...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

news category


Related Categories:
July 2017

July 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search