Textile mill associations have submitted a joint memorandum to Union Finance Minister Nirmala Sitharaman looking for financial support.
The associations have sought extension of one-year moratorium for compensation of the principal quantity; conversion of three-year loans underneath the Emergency Credit Line Guarantee Scheme (ECLGS) into six-year time period loans, and extension of obligatory financial help to mitigate the stress on working capital, on a case-to-case foundation.
The affiliation stated in press launch that underneath the ECLGS, ₹16,920 crores had been disbursed to the textile business as of September 30, 2022. The spinning phase faces a disaster with a 50% decline in cotton yarn exports, a 23% drop in general export of cotton textiles, and an 18% discount in whole textiles and clothes merchandise in 2022-2023 in contrast with the earlier 12 months. Capacity utilisation in the mills is 30%-50% and “this dire situation has pushed many spinning mills, particularly SMEs, into severe financial stress,” the affiliation added.
