The Confederation of Indian Textile Industry (CITI) has thanked Mr. Anand Sharma, Minister for Commerce, Industry & Textiles, for getting the clearance of the Finance Minister for the debt restructuring proposals for the textiles and clothing industry.
In a press release, Mr. S.V. Arumugam, CITI Chairman, has stated that at a recent meeting with the Finance Minister, Mr. Sharma obtained clearance for restructuring of debts worth Rs. 35,000 crores to the industry in view of the huge losses suffered and the crisis being faced by the industry.
Mr. Sharma has also confirmed that the Finance Ministry would recommend to RBI a special dispensation in the NPA norms to avoid asset reclassification in allowing a two-year moratorium on term loans to the textile industry. CITI’s proposal for converting eroded working capital into working capital term loans (WCTLs) repayable in three-five years has also been taken up by the Textile Minister. The Finance Ministry would be recommending this proposal to RBI.
Mr. Arumugam has further stated that it was the persistent efforts of Mr. Sharma and the officials of the Textile Ministry that resulted in clearance of these proposals and that RBI would issue necessary instructions to the banks as early as possible.