The textiles units which borrowed funds from the government at concessional interest rates are likely to get relief as the Textiles Ministry is working on a plan to restructure these loans.
"Restructuring programme could address [consider] moratorium on repayment of TUFS [Technology Upgradation Fund] loans, working capital assistance and interest subvention on export of textiles and clothing," an official statement said here today.
Commerce and Industry Minister Anand Sharma, who holds additional charge of the Textiles Ministry, yesterday held consultations with the industry representatives in this regard.
He is scheduled to announce an export promotion package in the Foreign Trade Policy, to be unveiled tomorrow.
The restructuring plan is being formulated by Textiles Ministry in consultation with the Finance Ministry and the Reserve Bank of India, the statement said.
The restructuring plan would also include working capital assistance. About Rs 74,000 crore has been disbursed under TUFS till June 2010. The industry gets five per cent interest subsidy for modernising the machinery under the scheme.
The industry has to repay Rs 14,000 crore annually, but is unable to meet the obligation "because of the losses", Secretary General of the Confederation of Indian Textile Industry [CITI] DK Nair said. He said the industry is passing through difficult times.
