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Monday, October 01, 2012

Debt restructuring will help revive Indian textile sector
The Government of India’s decision to restructure loans worth Rs. 350 billion is expected to play a major role in revival of the industry, Mr. V Narayanasamy, Union Minister of State in the Prime Minister’s Office (PMO) said, while addressing the 5th CEO conference ‘Texpin 2012’.
Mr. Narayanasamy 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 Upgradation 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.
Noting that just 17 percent of the manufacturing sector companies send their workers for skill training, Managing Director and CEO of National Skill Development Corporation, New Delhi, Dilip HM Chenoy, urged the industry to value productivity and accordingly pay more to skilled workers.
On proposed entry of FDI in retail, Mr. Narayanasamy said this is expected to bring about US$ 10 billion in the domestic industry over the next two to three years, and would even benefit the farmers as it would facilitate direct procurement of farm produce leading to better price realisation, wider employment generation and supply of products at reasonable rates.
However, he said while many states like Uttarakhand, Andhra Pradesh and Maharashtra have welcomed the proposal, others like Kerala, Tamil Nadu, Madhya Pradesh and Karnataka are opposed to the same.