The Union Ministry of Textiles will examine the proposal of extending Technology Upgradation Fund Scheme (TUFS) benefits to units that go in for debt restructuring.
A senior official of the Ministry told The Hindu on Friday that currently, benefits of the scheme were not available to units that became non-performing assets (NPAs).
A two-member inter-ministerial committee had a meeting with representatives of the textile and banking sectors on Friday. It was decided at the meeting that banks would open a special window to take up the applications for debt restructuring. The industry associations would collect details and the list of units that required debt restructuring. The banks would then start the loan rescheduling exercise from August 1, 2012. It would be completed in 90 days.
The textile industry appealed to the Ministry to extend the benefits of the TUF scheme to units that become NPA because of repeated restructuring. The units would continue to get the TUF benefit that it was getting now and it would be for the originally committed repayment schedule, according to industry representatives who participated in the meeting on Friday. The Ministry would examine if this would be possible, the official said.
