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Debt restructuring to lift morale of textile sector – TEA

May '12
Dr. A. Sakthivel, President of Tirupur Exporters' Association (TEA) said he was thankful to Shri. Anand Sharma, Hon'ble Union Minister of Textiles and Commerce & Industry for Finance Ministry's approval for debt restructuring the loan amount of Rs.35,000 crores and noted that the Hon'ble Minister was very supportive and had taken efforts for getting approval from the Ministry of Finance.

Dr. Sakthivel also noted that the Hon'ble Minister was more concerned more about the plight of the textile industry which provides large employment next to agriculture. He also thanked the Textile Secretary Smt. Kiran Dhingra, I.A.S., and Joint Secretary Shri. V. Srinivas, I.A.S., for their unstinted support in getting clearance of the proposal from the Ministry of Finance.

Dr. Sakthivel said that the Finance Ministry would recommend to RBI not to classify the units asset as NPA after providing special dispensations in NPA rules and also allowing a two year moratorium on term loan to the Textile industry and converting the eroded working capital into working capital term loan repayable over a period of three to five years.

Dr. A. Sakthivel said that the knitwear garment export sector and other stakeholder units in Tirupur have been eagerly awaiting with bated breath for the positive announcement mainly to tide over the crisis since they are struggling to service their loan and interest further to slowdown of exports.

He further noted that the debt restructuring to the units at this juncture will be a major relief to all and certainly lift the sagging morale of the textile industry.

Dr. Sakthivel hoped that RBI would issue the necessary instructions to the Banks at the earliest.

Tirupur Exporters' Association (TEA)

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