With rising bad loans becoming a concern for the textile industry, Texpreneuers Forum has commissioned a study to identify the factors that ail the textile sector. The forum has engaged Credit Rating Information Services of India Limited (CRISIL) for the purpose and the interim report is expected to be ready within a week.
“The interim report of the study will be handed over shortly to the Union Government to reiterate the demands of the textile sector here for getting various incentives including the coverage of interest subvention scheme for yarn and fabrics exports too apart from the garments, says Prabhu Damodaran, secretary of the forum. As part of the study, balance sheets of nearly 200 units, especially those in the spinning sector, that face financial trouble for the last few financial years will be studied apart from analysing the impact of ‘cotton economy’ on the financial status of various segments of textile production chain.
“Many textile units fell into debt mainly because of the losses incurred due to the cotton price fluctuations a few years back from which the firms could not make a complete recovery,” textile entrepreneurs pointed out.
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