Banks told to recast Rs 35,000 crore debt for textile sector


NEW DELHI: The government on Tuesday asked banks to restructure loans worth Rs 35,000 crore for the textile sector, bringing relief to the sector, which is reeling under the impact of volatile yarn prices and slowdown in major markets. Banks have an exposure of Rs 1.56 lakh crore to the sector, which means just under a quarter of the loans will be restructured in one of the biggest loan recast programmes. 

The long-pending demand of the industry will benefit around 2,000 cotton textiles mills, a majority of which are in Tamil Nadu, and the man-made fibre segment in Gujarat, where assembly elections are due later this year. Of the overall package, nearly Rs 27,000 crore is expected to be pocketed by the cotton mills, while Rs 3,600 crore will flow to the man-made segment. Before assembly elections in Uttar Pradesh, the government had announced a package for weavers, which included softer loan terms. 

The latest lifeline to the largest employer in the manufacturing sector comes at a time when industrial growth and exports have slowed and there is an all-round demand to boost economic activity. A healthier financial position of Indian textile companies also augurs well for their export competitiveness. The package, finalized after a meeting between finance minister Pranab Mukherjee and commerce, industry and textiles minister Anand Sharma, will include a two-year interest moratorium and conversion of eroded working capital into longer-term loans with three to five year term. 

Soon, aggressive textile policy for upliftment of cotton industry


SURAT: Chief minister Narendra Modiannounced that the state government is in the process of formulating an aggressive textile policy for the upliftment of the cotton textile industry and taking the ‘made in Gujarat’ brand to the foreign shores. 

Modi said the government is working on five ‘F’- farm, fibre, fabric, fashion and foreign. 

“We are the leading cotton producing state in the country. Now we want to transform the state’s cotton industry as a leader in yarn manufacturing, cloth manufacturing, readymade garment manufacturing and later we will reach out to the world market with our products,” he said. 

“Why there is a need to export our cotton? All the cotton produced will pass from different stages of manufacturing in the state itself and then we will capture the world market. We want the world buyers to flock to Gujarat in search of readymade garments,” he added. 

Interestingly, Modi himself had hit out at the UPA government for banning cotton exports recently. 

Modi’s announcement has not gone down well with the textile entrepreneurs, weavers and industrialists in the city. Reason: Surat is the country’s biggest man-made fibre industry and it is facing a tough competition from the cotton yarn and cotton garments in the domestic as well as international markets. 

“The aggressive policy for textile as announced by the CM is only for the cotton sector. Surat is a man-made fibre hub and there is nothing for us to welcome the announcement,” said a leading textile entrepreneur 

He added, “The formulation of the new textile policy for cotton by the state government would put the city’s man-made fibre hub at risk. Many industrialists, weavers and entrepreneurs may turn to cotton-based textile production instead of using polyester yarn.”

Thai delegation explores business opportunities in Gujarat


VADODARA: A trade delegation of Thai representatives led by ambassador Pisan Manawapat visited the city on Tuesday to gauge industrial and infrastructure development in and around it.

Manawapat with around half-a-dozen other officials from Thailand met officials at Vadodara Municipal Corporation (VMC), Vadodara Chamber of Commerce and Industry (Vand are scheduled to visit key industrial units around the city on Wednesday.

VMC commissioner Ashwini Kumar said the delegation was on a visit to familiarize itself with the business environment in the state. “They discussed urban and industrial development in and around Vadodara extensively with us. They were keen to know how the city would develop in the coming years and what opportunities would emerge here,” he added.

Manawapat said the delegation was there to see the potential for business in the state. “So far, business houses from Thailand have had a good presence in south India. We will introduce Gujarat as a destination for business to them,” he said. The ambassador said that he had also been briefed regarding the Delhi-Mumbai Industrial Corridor. “We will look into the opportunities available on this front too,” he said. He added that prominent Thai construction companies had presence in India and were involved in infrastructure projects.

At VCCI, the delegation met industrialists across a broad spectrum of industrial sectors. Even representatives of education institutes and NGOs were present. “Thai prime minister Yingluck Shinawatra has announced a Free Trade Agreement with India. Once this is signed, we expect the trade between the two nations to multiply and bilateral trade may exceed 10 billion USD,” Nilesh Shukla, senior vice-president, VCCI, said.

Former VCCI president Jatin Bhatt said the Thai delegation was particularly impressed by the power situation in the state. “They are eyeing sectors like power, textiles, automobiles and electronics,” he added.

Tripura govt announces steps to boost silk production


In view of soaring demand for its silk in local as well as international markets, the government of Tripura, a state in North-eastern India, has decided to introduce powerlooms at the state-owned silk producing units to enhance their productivity, Handloom and Industries Minister Jitendra Chowdhury said.

Earlier, only the neighbouring states sought Tripura silk, but now there is demand even in foreign countries, the Minister said. He added that the government is emphasizing on increasing the production of silk moth and upgrading state-run production units with powerlooms in place of hand looms.

The state’s silk turnover has increased almost 100 percent this year compared to last year, which enabled the state government to earn Rs. 10 million in revenues, the Minister said.

Mr. Chowdhury stated that mulberry cultivation is undertaken on around 3,352 acres of land in the state by around 7,000 cultivators, and the state is actively trying to increase this area.

The government intends to raise production of silk sarees in government-run units from 3,969 pieces to 8,750 pieces, this year, and has also decided to boost value addition through introduction of new designs, the Minister said.

According to an expert in textile designing, increased value addition calls for preparation and application of more beautiful designs, and local entrepreneurs should be motivated on this front.

Karnataka woos textile industries from Tamil Nadu


Coimbatore: Highlighting the problem being faced by textile industry in Tamil Nadu, such as power and pollution, Karnataka has invited entrepreneurs to invest in that State.

Inaugurating a ‘global investors meet’, a roadshow to showcase advantages for the industries investing in Karnataka, on Friday, Karnataka Textile minister, R Varthur Prakash, said Government has brought out innovative schemes to attract investment in the textile sector.

There was no no power cut in the State and availability of labour was in plenty, he said, adding, Karnataka did not have any pollution related issues for processing sector The policy ‘Suvarna Vastra Neethi’, was framed in such a way, understanding the requirements of textile entrepreneurs from Tamil Nadu, Prakash said.

Karnataka woos textile industries from Tamil Nadu
 

Karnataka has seen an approximate new investment of more than Rs 2,700 crore during the last policy period, with more than Rs 2,800 crore investments in the pipeline, a release, quoting him, said on Saturday.