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 6th Dec 2016

Garments, yarn export entitlement quota extended for 1 yr

Indian government has extended the export entitlement quota for...

Textiles | On 6th Dec 2016

Cash inflow will revive sales: Textile industry

The textile industry representatives are hopeful of revival of...

Courtesy: SIMA

Textiles | On 6th Dec 2016

Amma gave special attention for textile growth in TN: SIMA

Former Tamil Nadu chief minister J Jayalalithaa paid special...

Interviews View All

Giovanni Pizzamiglio, Paolo Crespi & Riccardo Robustelli
Epson, For.Tex & F.lli Robustelli

‘The percentage share of printing in the global textile market is pretty...

Karan Suratwala
Key Textile Accessories Private Limited

Chinese imports are destroying the supply chain

Nuno Venda
ROQ

‘There has been an increase in demand for water based inks, rather than...

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Silke Brand-Kirsch
Schlegel und Partner

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

Kai Poehler
Voith Paper GmbH & Co. KG

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

Robert Brunner
Devereux

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

Sonam & Paras Modi
SVA

Sonam and Paras Modi's Sva Couture is synonymous with head-turning...

Wendell Rodricks
Wendell Rodricks

"We should not compare India and the West. There are things we do 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
December 2016

December 2016

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

SUBSCRIBE


Browse Our Archives

GO


Advanced Search