A meeting of a Group of Officers on Friday (July 13) with representatives of the banking and textile sectors is expected to look at the modalities of implementing the measures proposed under the debt restructuring package for the textile industry. A senior official of the Ministry of Textiles told The Hindu that there were about 450 companies that required debt restructuring. This would include rescheduling of Rs.7,000 crore term loan and Rs.2,000-2,500 crore of working capital loan. The meeting on Friday would look at creating a special window in banks for taking up the restructuring applications, monitoring the system of rescheduling, and a time-frame for the process.
In a letter to the Union Ministry of Finance last month, the RBI said that it had no objection to the proposal for a two-year moratorium on term loans, and conversion of working capital into working capital term loan for four-to-five years. However, the apex bank felt that the case for asset classification benefit on second restructuring was not justified.
Keywords: textile industry