The lack of loans and high interest rates are heavily impacting the small and medium enterprises (SMEs) in the textile sector, said Ms Rita Menon, Textiles Secretary.
Ms Rita Menon, said, “SMEs in sectors like silk sector, power-loom and spinning are hit because of lack of working capital and high interest rates.” This statement has come on the sidelines of Apparel Export Promotion Council (AEPC) function here.
The Union Finance Ministry is reviewing a loan restructuring proposal for the textile sector and a decision may come soon.
The Textiles Ministry is not eyeing for 'cash outgo but a moratorium on loans for two years so that the working capital could be secured for that time period. The step of suspension of loan repayment for two years would be helpful in protecting the units from becoming non-performing assets.
Read more at: http://news.indiamart.com/story/absence-loans-high-interest-rates-affecting-indian-textile-smes-rita-menon-152189.html
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