Despite the measures announced by the finance ministry and the Reserve Bank of India (RBI) sounding lucrative and reassuring to revive the textile sector, most mill owners are doubtful about the resurrection processes at the ground level, according to the South India Spinners Association (SISPA), which recently said no attention was paid to the primary request by industries.
In a statement, SISPA president N Murugesan said that the main industry request to offer waiver of interests for six months along with interest subvention for a year to facilitate revival was ignored.Despite the measures announced by the finance ministry and the Reserve Bank of India sounding lucrative and reassuring to revive the textile sector, most mill owners are doubtful about the resurrection process at the ground level, according to the South India Spinners Association,which recently said no attention was paid to the primary request by industries.#
The steps taken to grant loans by banks to industries are another burden to the heavily depleted industries as the monthly repayments become higher than the already existing payments at a time when the markets for large-scale demand and supply are not favourable, he was quoted as saying by a news agency.
With recent lockdown relaxations, migrant workers have started returning to their native states due to uncertainty of the COVID-19 pandemic, as a result of which the mills have no alternative resources and are completely devastated, he said.
The Tamil Nadu Electricity Board imposed a fine on the financially-burdened textile mills for non-utilisation of power and thee mills were sent bills for April, with a hefty fine for not maintaining the power factor. That was completely unreasonable as the textile mills did not shut down to cater to their own interests but followed the government’s orders, he said.
The textile mills are now taking legal recourse to fight against this unfair decision by the government.
Fibre2Fashion News Desk (DS)
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