Textile industry welcomes debt restructuring package

CHENNAI: The Rs 35,000-crore debt restructuring for the ailing Indian textile sector has been appreciated by the Tirupur Exporters' Association.

The Finance Ministry okayed the debt restructuring deal after meeting Union Minister of Textiles, Commerce and Industry and the Finance Minister.

According to the restructure package, it will offer special dispensations in non performing asset (NPAs) norms to not classify the textile industry loans as bad loans, permit two year moratorium on the term loan to the industry and also convert the eroded working capital into working capital term loan repayable within a time span of 3-5 years. This statement has come from Exporters' Association President Dr A. Sakthivel.

The knitwear garment export sector in Tiruppur has been waiting for a package to counter the present slowdown in exports since they have been facing problems to service their loan. The debt restructure will be helpful for the Indian textile industry.

Sakthivel is hoping that RBI would be issuing the mandatory instructions to the Banks as soon as possible.