New Delhi (PTI): The USD 52-billion Indian textile industry, hit by recession in the US and several European economies, today asked the government to step in immediately to save a larger part of Rs 1 lakh crore investment, made in the last three years, becoming non-performing assets.
"Government should not allow Rs 1 lakh crore in due course of time to become NPAs," President of the Confederation of Indian Textile Industry (CITI) R K Dalmia told reporters here.
The industry, India's largest employer after agriculture, said it has already laid off seven lakh people. "Already seven lakh people have lost jobs and the number could be 10 lakh by March if the situation continues," Dalmia said.
Of the total investment made by the industry in the last few years, Rs 65,000 crore were financed through debts which run the risk of becoming toxic, a CITI official said.
Dalmia said, "The industry is in losses. If such a situation is allowed to continue for some more time...industry will not be able to pay its term loans and start defaulting.
Already there may be some defaults". The industry raised as much as Rs 50,000 crore concessional loans through the Technology Upgradation Fund Scheme under which the government gives an interest subsidy.
With drying of export orders and slackening of the domestic demand, the industry is going through difficult times.
The industry gives a direct employment to 35 million people. Exports account for USD 22 billion of the total size of the industry.
"We are expecting a five per cent decline in exports this financial year," CITI Secretary General D K Nair said.
Source : The Hindu