Tirupur textile industry seeks Rs 2,000 cr restructuring

The textile manufacturers of Tirupur reeling under debts due to the high manufacturing costs and shutting down of the dyeing units have approached the government to restructure their loans, which is around Rs 2,000 crore.

A Sakthivel, president, Tirupur Exporters’ Association said that “we have written to Anand Sharma, Union Minister for Commerce and Industry, who is also holding additional portfolio of Textile, to restructure the loans, which will be in the tune of around Rs 2,000 crore”.

He added, an inter ministerial meeting is scheduled on Wednesday, where the issue is expected to be discussed.

The industry, has seen a spate of legal issues after the Madras High Court order in January 2011 which asked all the Dyeing units in the town to shutdown. The court observed that the dyeing units were polluting and causing irreparable damage to the Noyyal river that runs through Tirupur. The industry has asked the government to postpone the repayment of loans from two years to three years. The industry has also asked for a one year moratorium and interest holiday, said A Sakthivel. The Tirupur textile industry has reported losses to the tune of around Rs 3,500 crore this fiscal due to the closing down of dyeing units in the town.