Ministry plans debt recast fund for textiles units

After steel, now it’s the turn of textiles. In a bid to enhance the confidence among lenders, the Union textile ministry is under serious consideration of creating a ‘Debt Restructuring Fund’ for the textile units. It is estimated that banks and financial institutions will be able to salvage around Rs 10,000 crore invested in the textile units using this fund.

According to textile secretary S.B. Mohapatra, as per preliminary information made available to the ministry, around Rs 16,000 crore investments have been made by various banks and financial institutions and almost around Rs 10,000 cr could be recoverable through either some government help or by making some intra-adjustments by both the parties.

JVSL calls EGM for debt recast

MUMBAI: The Jindal Vijayanagar Steel Ltd (JVSL) board , which approved corporate debt restructuring (CDR) package, said that an EGM of shareholdersis scheduled on April 22. Nearly a month after FIs and banks approved a revamp of Rs 20,000 crore CDR of Essar Steel, Ispat and JVSL, JVSL informed BSE that the board of directors has approved the debt restructuring package duly approved by CDR cell. (ENS)

Addressing Afro-Asian Textile And Apparel Congress (AATAC), Mohapatra said lenders could replace high-cost loans with cheap credit and also extend the repayment period or any other methods.

Meanwhile, the finance and textile ministries would now begin dialogue with institutions on formulating details of funds which would be administered collectively, and within next three months this will materialised, he added.