New Delhi: Seeking intervention of the Prime Minister Manmohan Singh for a moratorium on loan repayment, the crisis-ridden textile industry has said immediate government measures can help it save one million jobs and create additional 2.5 million employment opportunities.
The textile industry, the largest employer after agriculture, has also demanded increased tax refunds on exports, scrapping of import duty on man-made fibres and interest subsidy of four per cent on export finance.
“The textiles and clothing industry can re-employ about one million workers (in 2008-09 fiscal) and create another 2.5 million additional jobs in the next couple of years... if the available policy space is used judiciously.” Chairman of the Confederation of Indian Textile Industry (CITI) Chairman R K Dalmia said in a letter to the Prime Minister.
Dalmia said the stimulus packages announced in December 2008 and January this year could not pull the industry out of the crisis.
CITI said that the disbursal of Rs1,400 crore under the Technology Upgradation Fund Scheme in the second bailout package was only part of an outstanding due to the industry of Rs2,000 crore till March last year.
It has said a two-year moratorium on the repayment of term loan (principal amount) should be allowed so that the overdues do not lead to borrowers defaulting with the banks.