Date:27/12/2006 URL: http://www.thehindu.com/2006/12/27/stories/2006122702721500.htm

National

Relief package for Surat textile industry

Special Correspondent

Disbursement to be carried out by Textile Commissioner

Each loom to be given Rs. 37,500

Moratorium on repayment of loans to be extended

AHMEDABAD: The Centre has finalised a Rs. 77 crore-package for the flood-hit textile industry in Surat.

Union Textile Minister Shankarsinh Waghela said here on Monday that it was the first time that the Centre had approved a package for a natural calamity-hit sector anywhere in the country.

Soon after the floods, a team of the Textile Commissioner carried out a survey of the damage and finalised its recommendations for assistance to 5,845 powerloom units.

Under the package, Rs. 56 crores would be provided as Central assistance to the units for repairing or if necessary, replacement of the damaged looms and other machinery while the remaining Rs. 21 crores would be provided as subsidy against capital funds.

Each loom would be given Rs. 37,500 which was the capital required for three months. The moratorium for repayment of any loan taken earlier, either under the Technology Upgradation Fund Scheme (TUFS) or other bank loans, would be extended by two years.

In cases where pre-flood loans were obtained from banks, the banking institutions had been told not to consider non-payment of instalments as non-performing assets (NPA) for six quarters.

Mr. Waghela said the disbursement of the assistance would be carried out by the office of the Textile Commissioner directly without involving the State Government.