The Tirupur Exporters' Association has lauded the Union Finance Ministry for approving the Rs 35,000-crore debt restructuring for the textile industry, a BL report said. Citing a statement from the association, the report said Association, the Finance Ministry approved the debt restructuring deal today after a meeting of the Union Minister of Textiles, Commerce and Industry and the Finance Minister.
Dr A Sakthivel, President, Tirupur Exporters' Association said that the restructure package, once the Finance Ministry recommends to the RBI, provides special dispensations in non performing asset rules to not classify the textile industry loans as bad loans, allow a two year moratorium on the term loan to the industry and convert the eroded working capital into working capital term loan repayable over a period of three to five years.
The knitwear garment export sector and other stakeholder units in Tirupur are eagerly awaiting the announcement to tide over the ongoing slowdown in exports since they are struggling to service their loan. The debt restructure for the units will be a major relief to all and lift the sagging morale of the textile industry. The official hoped that RBI would issue the necessary instructions to the banks at the earliest, added the report.