Textiles Ministry to Formulate a Restructuring Program for the Textiles Industry.

The Union Minister of Commerce, Industry and Textiles Shri Anand Sharma has directed the Ministry of Textiles to formulate a restructuring program for the textiles industry in consultation with Ministry of Finance and Reserve Bank of India. “The restructuring program could address issues like moratorium on repayment of TUFS loans, packing credit in foreign currency to be made available by banks, working capital assistance and interest subvention on export of textiles and clothing” He said at a meeting with the stakeholders in Textiles sector late last evening. The meeting was part of structured dialogue that the Minister has initiated with the industry.

Shri Sharma outlined a number of proactive steps taken by the Government to address the industry slowdown. They include restoration of DEPB on cotton yarn with effect from April 2011, placing cotton exports on OGL without quantitative restrictions, simplification of the registration procedures for cotton and cotton yarn, financial package for handloom weavers, enhanced allocations for TUFS and sanction of new textiles parks.

The meeting was attended by representatives of all the major bodies like CITI, CAI, SRTEPC, CMAI, TEXPROCIL, CEPC, EPCH, ISEPC and many others. Secretary Textiles Smt Rita Menon briefed the meeting about the steps taken by the Ministry. Secretary Commerce Dr Rahul Khullar also addressed them stressing the need to stay competitive within the existing framework of international trade regime.

The Minister is scheduled to announce an export promotion package tomorrow. In a run up to that he has had intense consultation with the captains of Industry at the Joint Task Force and Board of Trade apart from this meeting on Textiles sector. “I do hope that the difficult times will pass soon and we can have a big boost to exports in the coming days” said Shri Sharma.

Source : investinindia.com