Date:09/02/2005 URL: http://www.thehindubusinessline.com/2005/02/09/stories/2005020901350700.htm

Back Minister to review textile sector financials

Our Bureau

Coimbatore , Feb. 8

A SPECIAL meet of the textile industry and financial institutions being convened under the chairmanship of the Union Textile Minister, Mr Shankarsinh Vaghela, next week may rework on the financials of the textile sector in general and retune the investments into the industry, in particular.

According to textile industry sources, the proposed meet called by the Union Textile Minister will be held on February 14 in Ahmedabad, and will take stock of the prevailing financial status of the textile sector vis-à-vis the credit norms prescribed by the lending agencies for the sector and new investment proposals.

The sources said besides, members from various textile manufacturing industries, the heads of banks/FIs have also been called for the Ahmedabad meet, which is likely to review the issues such as the current debt-equity ratio for the textile industry, working capital facility and the new investment proposals without linking them to the poor performance of the industry.

The sources told Business Line that the meeting may also go into the working of the debt-restructuring package (DRP) introduced two years ago for the textile units that are technically viable but financially weak.

There have also been instances from among the textile enterprises experiencing difficulties in getting the five per cent interest subsidy reimbursed for the loans availed under the Union Government-supported textile technology upgradation fund scheme (TUFS).

These enterprises have been pleading for early settlement of claims of the TUFS benefits. The meeting is also likely to review this issue, the sources said.