Home / Knowledge / News / Textiles / Meeting discusses restructuring Indian textile sector debt
Meeting discusses restructuring Indian textile sector debt
06
Feb '12
A high-powered committee met last week to deliberate on restructuring the debt of the Indian textile industry.

The committee compromised of officials from the textile and finance ministries, officials from the Planning Commission and representatives of banks who had lent to the textile sector.

This meeting was called upon from a request by the stake holders in the textile industry who had raised apprehensions of their debts turning in to non-performing assets if the loans were not restructured.

Though details of the meeting were not immediately available, it is anticipated that the government may lend a sympathetic ear, considering that the industry is the second highest employment generator.

The Confederation of Indian Textile Industry (CITI) had calculated the overall debt of the Indian textile industry at a massive Rs one trillion and losses were estimated at Rs 110 billion.

In a report released last week, Fitch Ratings had said, “Cash losses for cotton yarn manufacturers and lower-end fabric companies in the first half of fiscal 2011-12, impaired their debt repayment capacity leading to several instances of over-utilisation of working capital limits.

It added, “Some Fitch-rated textile companies defaulted in YTD FY12 due to an inability to obtain a timely increase of working capital facilities, as banks tightened lending criteria for the sector.

“Refinancing risks would increase for distressed textile companies in 2012 as the Reserve Bank of India and the Finance Ministry have rejected the proposal for restructuring of textile loans”, it concluded by saying.

Fibre2fashion News Desk - India


Must ReadView All

Courtesy: BekaertDeslee

Textiles | On 23rd Oct 2017

BekaertDeslee to expand North American facility

BekaertDeslee, one of the largest manufacturer of mattress textiles...

Courtesy: A&E

Textiles | On 23rd Oct 2017

A&E unveils Magic using Repreve sewing thread

American & Efird (A&E), a leading developer of industrial and...

Courtesy: Messe Frankfurt

Textiles | On 23rd Oct 2017

Over 4,000 exhibitors attend Intertextile Shanghai 2017

Another successful Intertextile Shanghai Apparel Fabrics has wrapped...

Interviews View All

Md Hanifur Rahman
Aman Group

The level of understanding the job role and organisational requirements...

Karel Williams
Dow Microbial Control

'Silvadur is most rapidly adopted in areas where hygiene-conscious and...

Spokesperson
Hugo Boss

'Hugo Boss works with carefully selected sourcing partners'

Suresh P Bagrecha

Komal Texfab, founded in 1981, is into manufacturing of knitted fabrics,...

Abhishek Pachauri

Reckon Industries adapts latest systems for manufacturing from designing...

Hardik Sanghvi

Idealin Fogging Systems has been engaged in designing and manufacturing...

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Paolo Ocleppo
Sandvik Hyperion

Paolo Ocleppo, Rotary Cutting Segment manager, Sandvik Hyperion discusses...

Silke Brand-Kirsch
Schlegel und Partner

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

Vaanee Bhatia
Gritstones Clothing

<div>Delhi-based Gritstones Clothing offers quality and exemplary style...

Sidharth Sinha
Sidharth Sinha

<b>Sidharth Sinha</b> has contributed to the successful rebirth and...

Akta Adani
India Boulevard

India Boulevard is a San Francisco-based curated fashion marketplace that...

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

October 2017

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

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
77.1%
No
12.9%
Skip
10.0%

Total Votes: 70

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
61.4%
No
28.6%
Skip
10.0%

Total Votes: 70

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
85.7%
No
10.0%
Skip
4.3%

Total Votes: 70

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
75.7%
No
11.4%
Skip
12.9%

Total Votes: 70


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