The
Textiles Industry Association seeks ministry intervention to support sick Textile
industry by providing a 2 year moratorium on long term loans, special
dispensation by Reserve Bank of India in its NPA rules working capital term loans.
The Textiles Minister said that the
total outstanding debt of textiles sector is Rs. 155,809 crores of which debt
of Rs. 35000 crores needs restructuring. Government directions to banks to
consider this on priority would be issued in this regard.
Textiles Minister Anand Sharma said that there was agreement with the Ministry of Finance that the debt restructuring package would be considered on a case to case basis by Individual Banks. Ministry of Finance would examine in consultation with Reserve Bank of India for a 2 year moratorium on term loans, special provision in NPA norms to avoid asset reclassification and working capital eroded to be converted into working capital term loans repayable over a period of 3-5 years.
An inter-ministerial committee of senior officials would be constituted to coordinate with Industry-Banks in expeditious restructuring.
Textiles Minister Anand Sharma said that there was agreement with the Ministry of Finance that the debt restructuring package would be considered on a case to case basis by Individual Banks. Ministry of Finance would examine in consultation with Reserve Bank of India for a 2 year moratorium on term loans, special provision in NPA norms to avoid asset reclassification and working capital eroded to be converted into working capital term loans repayable over a period of 3-5 years.
An inter-ministerial committee of senior officials would be constituted to coordinate with Industry-Banks in expeditious restructuring.
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