Home / Knowledge / News / Textiles / Banks to recast Indian textile sector loans
Banks to recast Indian textile sector loans
30
May '12
The Indian textile industry has received a major relief as the government advised banks to restructure loans extended to the textile industry amounting to Rs 350 billion.

This long pending demand from industry bodies came after a meeting between Finance Minister – Mr Pranab Mukherjee and Commerce cum Textile Minister – Mr Anand Mohan Sharma.

Overall the banks have an exposure of around Rs 1,560 billion to the Indian textile sector. This means that a little less than 20 percent of the outstanding loans will be restructured.

The package envisages a two-year moratorium on interest payments and conversion of eroded working capital into long-term loans with tenure of between 3 to 5 years. This move would also help these loans to be classified as non-performing assets.

Nearly 70 percent of Rs 350 billion is expected to benefit nearly 2,000 cotton textile mills, more so those located in Tamil Nadu, a hub of cotton textiles.

The textile industry is the second biggest employer after the agriculture sector in India and this announcement will come as a breather for the sector reeling under the impact of volatility in raw material prices and slowdown in export markets.

Industry bodies like Confederation of Indian Textile Industry (CITI) and Tirupur Exporters' Association (TEA) have welcomed the move.

Fibre2fashion News Desk - India

Must ReadView All

Textiles | On 22nd Apr 2017

Strong rupee & weak trade to affect textile exporters

Textile and apparel exporters' earnings and EBITDA margins will be...

Textiles | On 22nd Apr 2017

Myntra acquires InLogg

With an aim to strengthen supply chain and logistics, Flipkart-owned...

Textiles | On 22nd Apr 2017

Aditya Birla Group launches new variant Liva Crème

After its successful launch of high quality fabric Liva in 2015,...

Interviews View All

Claudia Kersten
Global Organic Textile Standard

‘GOTS is a very efficient supply chain management tool, especially for...

Cyril Pereira
Reed Exhibitions India, organiser of Asian Machine Tool Exhibition 2016

'Major problem in the textile machinery manufacturing industry is the lack ...

Binoy Ravjani
Hero's Fashion

‘One of the recent trends in hand block printing is the indigo process,...

Kai Poehler
Voith Paper GmbH & Co. KG

The glass mat industry is growing by five to eight per cent annually. Kai...

Larry L Kinn
Suominen Corporation

Larry L Kinn, Senior Vice President - Operations Americas of Suominen...

Lynda Kelly
Suominen Corporation

Suominen Corporation is a manufacturer of nonwovens as roll goods for...

Mike Hoffman
Gildan Activewear SRL

Gildan Activewear, a manufacturer and marketer of branded clothing and...

Igor Chapurin
Chapurin

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

Ritu Kumar
Label Ritu Kumar

‘Classics will return’ "There are a lot of people wearing western clothes ...

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
April 2017

April 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