• Pre shipment and post shipment credit may be made available for the textile and clothing industry at a flat interest rate of 6 per cent and post shipment credit may be extended from the present three months to a period of one year. For Foreign Currency Credit, LIBOR + 0.5% may be charged.
• Service Tax applicable to all export related activities may be withdrawn immediately.
• A moratorium in respect of the principal amounts may be allowed for one year on all existing loans of the textiles and clothing industry, so that the industry will be able to improve their cash flow temporarily and the possibility of these loans turning into NPAs can be avoided.
While appreciating the importance of the textile sector to the economy and the serious problems that the industry is currently facing, the Prime Minister assured that the Government is alive to the problems of this sector and whatever measures are possible to reverse the current decline and to ensure the growth of the industry would be taken by the Government.
Confederation of Indian Textile Industry
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