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Coimbatore
SIMA suggests debt restructuring for textile industry
February 24, 2016
The Southern India Mills’ Association (SIMA) has requested the centre to introduce a debt restructuring scheme especially for the SMEs in the textile industry, keeping in mind the higher risk they face.
In a memorandum to union minister of state for commerce and industry, Mrs. Nirmala Sitharaman, who was in Coimbatore recently, the SIMA chairman, M. Senthil Kumar said that the textile industry has been incurring losses and several spinning mills were finding it difficult to repay their debts. While the large-scale units cold renegotiate their loans, the smaller units were finding it difficult to survive, he said.
With decreasing demands from China, India is forced to look for new markets to export at least 150 million kilos of cotton yarn each month. He said that, in these circumstances, MEIS benefits were essential to meet the additional transport costs incurred.
Keeping this in mind, Senthil Kumar has requested the government to extend the three percent export incentive given to other textile exporters to cotton yarn too.
