Surat textile units seek risk cover

After the recent floods wreaked havoc in Surat, about 50 per cent of textile units, which have already started production, are expecting the insurance cover.

Surat People's Co-operative Bank, meanwhile, has decided to grant Rs 10,000 to all the textile units with 2 per cent subsidy.

The co-operative bank has also urged the state and Central governments to grant 5 per cent subsidy in interest rate to the these units for three years.

"We will give Rs 200 crore to the affected looms. If the state and the Centre provide 5 per cent cut in interest rate we are ready to part with Rs 500 crore," said Jayvadan Bodawala, president, Surat Peoples' Co-operative Bank and chairman of South Gujarat Urban Co-operative Bank.

"There are more than 50 per cent textile units uninsured and around 50,000 power-looms insured. We are willing to give loans also to the uninsured units also," Bodawala added.

"We have also asked the Reserve Bank of India to give a one-year moratorium to co-operative banks so as to help the units hit during the floods," he further said.

There are 160 textile markets in Surat comprising 15,000 shops of which 1,000 units are not operational.

"The shops account two-third of the market and we have asked a grant of moratorium for co-operative banks from the state and Central governments,'' said Arun Jariwala, former president, South Gujarat Chambers of Commerce and Industries, and president of Surat Art Silk Manufacturers' Association.