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SIMA thanks Tamil Nadu CM for supporting textile sector
31 Oct '08
2 min read
The Southern India Mills' Association (SIMA) representing the organised textile industry in South India made an appeal to the Chief Minister of Tamil Nadu to take up the cause of the textile industry with the Prime Minister and announce two major reliefs immediately to sustain its survival in the globalised environment.
Since majority of the textile mills have incurred heavy cash loss, they are not in a position to repay the loans to the banks during the current year and the situation is likely to continue for few more years due to acute power shortage faced by the State in addition to steep hike in raw material cost, bank interest rate, transportation cost, etc.
Therefore, SIMA had appealed to the Chief Minister and the Prime Minister to provide two year moratorium period for repayment of loans availed from banks by the textile units.
The Association had also made a representation to restore export incentives i.e. duty drawback rates for yarn, fabrics, made-ups and garments which had been drastically reduced and 4% interest subvention extended on export credit which had been withdrawn with effect from 1st October 2008 to make the industry globally competitive and considering the huge incentives offered by the competing countries like Pakistan and China.
Pakistan has also extended two year moratorium period for repayment of loans and interest for the textile industry due to ongoing global recession. Indian Government has also provided two year moratorium for repayment of loans and interest and interest subvention facilities for the sugar industry to tide over the crisis.
Dr. Srinivasan, Chairman, SIMA, has profusely thanked the Chief Minister for positively responding to the appeal made by the Association and writing a D.O. letter to the Prime Minister requesting him to provide two-year moratorium period for repayment of loans and restore export incentives and interest subvention for export credits of the textile industry.
He has added that the proposed reliefs would greatly benefit the textile industry in Tamil Nadu which accounts for 47% of the country's spindle age and generating over Rs.30,000 crores in exports annually.
Since majority of the textile mills have incurred heavy cash loss, they are not in a position to repay the loans to the banks during the current year and the situation is likely to continue for few more years due to acute power shortage faced by the State in addition to steep hike in raw material cost, bank interest rate, transportation cost, etc.
Therefore, SIMA had appealed to the Chief Minister and the Prime Minister to provide two year moratorium period for repayment of loans availed from banks by the textile units.
The Association had also made a representation to restore export incentives i.e. duty drawback rates for yarn, fabrics, made-ups and garments which had been drastically reduced and 4% interest subvention extended on export credit which had been withdrawn with effect from 1st October 2008 to make the industry globally competitive and considering the huge incentives offered by the competing countries like Pakistan and China.
Pakistan has also extended two year moratorium period for repayment of loans and interest for the textile industry due to ongoing global recession. Indian Government has also provided two year moratorium for repayment of loans and interest and interest subvention facilities for the sugar industry to tide over the crisis.
Dr. Srinivasan, Chairman, SIMA, has profusely thanked the Chief Minister for positively responding to the appeal made by the Association and writing a D.O. letter to the Prime Minister requesting him to provide two-year moratorium period for repayment of loans and restore export incentives and interest subvention for export credits of the textile industry.
He has added that the proposed reliefs would greatly benefit the textile industry in Tamil Nadu which accounts for 47% of the country's spindle age and generating over Rs.30,000 crores in exports annually.
Southern India Mills' Association
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