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G. Gurumurthy

Coimbatore , Aug. 13

THE debt-restructuring scheme evolved by the Steering Group on Investment and Growth in the textile industry would provide impetus to the viable and potentially viable textile units to invest in modernisation and strengthen backward integration plans, Mr B.K. Patodia, Managing Director of the GTN Textiles Ltd and Deputy Chairman of Texprocil, has said.

Complimenting Mr N.K. Singh, who headed the Steering Group, for his report to the Finance Minister for setting up debt re-structuring scheme for textile industry, Mr Patodia felt the efforts of the Ministry of Textiles in formulating the scheme for retirement of high cost debts of textile units would resuscitate the ailing textile units and strengthen them to withstand competition.

Textile units will be able to restructure their loans at 8 per cent interest and the interest rate on working capital would be brought down to PLR.

Mr Patodia recalled that the textile industry was pleading for quite sometime with the Government to bring down the interest cost of viable and potentially viable units to international level, so that they can withstand fierce competitive forces, which will be unleashed in the wake of quota-free regime from 2005.

He however felt that in order to make the scheme more result-oriented, some modifications were necessary and the industry proposed to suggest necessary changes to the concerned authorities so that they are incorporated at the final stage of the scheme to be announced by the Ministry of Finance.

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