INDIA: One lakh Crore Rupees Investment in Textile Will Turn NPA Sans
Timely help to crisis hit textile and clothing sector can obviate Rs 1 lakh crore investments turning into non-performing assets, thereby saving the nation from a looming catastrophe, according to the textile industry.
At a press conference addressed by the representatives of textile and clothing industry today in Delhi
under the aegis of Confederation of Indian textile Industry (CITI), Mr.R.K. Dalmia, Chairman, CITI said that the two financial packages announced by the Government had fallen terribly short of expectation of the industry. Others present at the briefing included representatives of AEPC, PDEXCIL, STREPTC and TEXPROCIL.
The collective opinion of the industry was that speculative investments in civil aviation, real estate and automobiles received sops at the cost of exporting industries like textiles and clothing. They also felt that the packages have not addressed the issues of SMEs, which are labor intensive ones.
In a hard hitting statement, the industry representatives termed the two stimulus packages as cosmetic and superficial and said that whatever sops that were extended were only restoration of facilities, which were earlier withdrawn. For instance, package of 7th December 2008 had only released Rs 400 crore, of the total facilities withdrawn or withheld earlier.
Added: January 23, 2009 Source: Agencies