The government has directed public sectorbanks to restructure loans worth Rs.35,000 crore to textiles firms, which arefacing financial problem, Minister of State for Finance Namo Narain Meena saidWednesday.
"Government has advised all public sector banks to set up a separatewindow for considering restructuring proposals from eligible borrowers in thetextile industry on case-to-case basis," Meena said in written reply to aquestion in parliament.
The minister said that to help the debt-ridden textiles firms banks can providea two-year moratorium on term loans and convert working capital into workingcapital term loans.
The Reserve Bank of India (RBI) has opined that there is no need for anyspecial regulatory dispensation and "banks can provide two-year moratoriumon term loans and convert working capital into working capital terms loans withrepayment period of 3-5 years as part of restructuring, in terms of existingRBI guidelines," Meena said.
Meena said the restructuring of debt for the textile sector by banks would notplace any financial burden on the government exchequer.
"No timeline has been prescribed for the said restructuring," headded.
According to the textiles ministry, the total outstanding debt of the sector isRs.155,809 crore, of which the debt of Rs.35,000 crore needs restructuring.