India : 'We just want rescheduling of loans' - CMD, GTN Textiles

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'We just want rescheduling of loans' - CMD, GTN Textiles

22
Mar '12

Mr BK Patodia

“On the whole, this is very neutral budget. It is also satisfactory in the sense that as far as our business of textiles is concerned, issues with regards to restructuring of debts, etc, have nothing to do with the budget” a top official of GTN Textiles told fibre2fashion.

“However, all we are asking for is rescheduling of our loans. We don't expect the government to give us funds. We are not even asking for a concession”, he added.

Mr BK Patodia is CMD of GTN Textiles a division of the GTN Group. The GTN Group which has four textile divisions within its fold has a total ring spinning capacity of 215,100 spindles.

He continued, “There is very little in the budget for the textile sector. The customs duty on shuttle-less looms has been reduced by 5%. The abatement on branded garments will make a difference of 3.6% on net duty. I can't comment much on it since we are not into that business. Nevertheless, anything positive is welcome.

“The Finance Minister doesn't want to take any harsh steps to either reduce the deficit or to mop up more by way of taxes. Basically it is a very safe budget”.

Speaking about his expectations from the government, he said, “Basically what we are asking is that restructuring should be done without the loans being declared as non-performing asset (NPA). If that happens, the bank that is restructuring the debt will have to make full provisioning in their books.

“As far as textile industry is concerned, the other long standing request is to reduce import duty on polyester and viscose fibres so that there is a level playing field. But that is very easy to ask and difficult to do.

“There is a lot of emphasis on power sector and infrastructure which is good. Import duty on coal has been removed. So I think the strong point is that the importance of the power sector has been recognized as a priority sector”.

Fibre2fashion News Desk - India

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