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

Pic: Ritu Manoj Jethani / Shutterstock.com

Apparel/Garments | On 31st Jul 2021

US firm Steve Madden moves production to Mexico & Brazil from China

As supply chain disruption remains a significant challenge, American...

Pic: GBG USA

Apparel/Garments | On 31st Jul 2021

Apparel & footwear firm GBG USA files for bankruptcy protection

GBG USA, an indirect wholly owned subsidiary of Global Brands Group...

Pic: Shutterstock

Apparel/Garments | On 31st Jul 2021

Asian garment industry market concentration, consolidation rise: ILO

Although Asia's garment market rose in size in value terms before the ...

Interviews View All

Textile Industry, Head honchos

Textile Industry
Head honchos

Always best to produce under own supervision

Textile Industry, Head honchos

Textile Industry
Head honchos

Marry craft and utility

Textile Industry, Head honchos

Textile Industry
Head honchos

Money never disappears-it just finds new opportunities

Bharat Ahuja,

Bharat Ahuja

A mono store brand, <b>Bharat Ahuja's</b> Desire Design Studio has emerged ...

Dhirubhai & Arvind Shah,

Dhirubhai & Arvind Shah

It supplies synthetic fabrics to top international brands like M&amp;S,...

Ritu Oberoi,

Ritu Oberoi

Mumbai-based Forsarees is a socially driven business enterprise, working...

Dr Anup Rakshit, ITTA

Dr Anup Rakshit
ITTA

The Indian Technical Textile Association (ITTA) is the only association of ...

Keith McMillen, Bebop Sensors

Keith McMillen
Bebop Sensors

Bebop Sensors' smart fabrics allows for a new level of interaction between ...

Brad Holschuh, Wearable Technology Lab, University of Minnesota

Brad Holschuh
Wearable Technology Lab, University of Minnesota

A new study led by researchers at the University of Minnesota's Design of...

Ruma Devi, Gramin Vikas Evam Chetna Sansthan

Ruma Devi
Gramin Vikas Evam Chetna Sansthan

Ruma Devi is a jet-setting promoter of artisans who has empowered...

Seema Gujral, Label Seema Gujral

Seema Gujral
Label Seema Gujral

<b>Seema Gujral</b>'s designs for her eponymous label revolve around...

Ramya Rao & Kavea R Chavali, Kalaneca

Ramya Rao & Kavea R Chavali
Kalaneca

<div>The journey of Kalaneca (kala-Art, Neca- Nikaah) formally began in...

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

Leave your Comments


July 2021

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


Advanced Search