Debt restructuring will help revive Indian textile sector.
The government of India's decision to restructure loans of the textile sector worth Rs. 350 billion is expected to play a major role in revival of the industry, said Mr. V Narayanasamy, Union Minister of State in the Prime Minister's Office (PMO). He said the government would shortly issue necessary instructions to banks for implementation of the Rs. 350 billion textile sector debt restructuring package.
S. Dinakaran, Chairman of the Southern India Mills' Association (SIMA), organizer of Texpin 2012, urged the government to allow a two-year moratorium period for loan repayment to concerned mills and also to grant Technology Up gradation Fund benefits to the mills covered under debt restructuring. He emphasized on the need for devising a Comprehensive National Fibre Policy for affording a level playing field to domestic textile industry players.