The Apparel Export Promotion Council (AEPC) has appealed to Union Finance Minister Nirmala Sitharaman to instruct banks to restructure stressed loans of apparel manufacturers so that the units can continue operations.
In a memorandum to the Finance Minister, AEPC acting chairman A. Sakthivel said that banks are announcing stressed loans as non-performing assets (NPA) and do not want to restructure the loans. Several units will be able to continue operations if the loans are restructured with additional working capital. Apparel export is a time-sensitive sector that needs timely sanction of loans.
With trade uncertainty between the United States and China, several buyers want to source from India. This has thrown open opportunities for Indian apparel exporters. Textiles should be classified as priority sector by the banks. Mr. Sakthivel appealed to the Minister to pass necessary instructions to the banks to support the MSMEs. The job working apparel units that supply to exporters should also be considered on priority basis. The banks should also pass on the reduction in repo rates to the end users, he said.
