The Textiles Ministry today held a meeting with the Indian Banks Association to discuss various issues, including possibility of debt restructuring of the distressed textiles sector.
Although no decision was taken, Textiles Secretary Rita Menon said that the Ministry would work further with the Reserve Bank and the Finance Ministry to reset bank loans.
"There is nothing which I have achieved, we will be working further with the Reserve Bank of India and Department of Financial Services to see what will be a good palatable mix of support to the industry and a way forward as far as working capital is concerned," Menon said after two-hour long meeting with the bankers and the textile industry here.
She said that the ministry is committed to "pressing upon the government for a fresh restructuring" which is necessary for the power loom and silk sector.
The textiles industry which was hit by a sharp fall in cotton yarn prices, poor domestic demand and curbs on cotton yarn exports in December last year has been pressing for restructuring of loans worth Rs 1 lakh crore.
The industry representatives had approached the ministry and sought a two-year moratorium on repayment of loans.
The meeting was attended by the representatives from Department of Financial Services and senior officials of 25 banks, including State Bank of India, Union Bank, Punjab National Bank and Bank of Baroda.
