Rs 77 cr central relief for Surat textile units

Union Minister for Textiles Shankarsinh Vaghela announced a relief package for Surat's textile industry which was severely affected in the recent floods. The minister was in Ahmedabad on Monday.

The relief package includes interest subsidy of Rs 21 crore for working capital loan package.

Under the package the units will get assistance ranging from Rs 6,000 per loom to Rs 1.5 lakh for processing and special finishing machine. Moreover, the flood-affected units will also receive a working capital loan of Rs 37,500 per loom at 5 per cent.

The minister also announced a two-year increase in the moratorium period for TUFS loans. For the other loans than TUFS, the affected units will not be treated as NPAs in case of non-payment upto six quarters.

Textile Commissioner J N Singh, who was also present at the press meet in Ahmedabad, said, "For the first time the organised sector has been given direct assistance. The textile units of Surat have suffered a production loss of Rs 700 crore. This includes the loss of machinery of over Rs 85 crore."

He added that about 1,000 units had taken over Rs 50 crore as loans for upgradation of technology.

Addressing reporters, Vaghela accepted that around 2 lakh people are likely to benefit from the relief package.

He added that a survey by the ministry of textiles revealed that floods have affected 94,000 textile units of Surat.