NITMA requests for Six Month’s Moratorium on payment of Interest rates & Installments of Loans taken by Textile Mills
As an urgent interim relief to overcome the current financial stress due to Corona virus Crisis (Covid -19), resulting in demand slump and uncertain growth prospects during 2020.
The Northern India Textile Mills Association (NITMA), during its last six decades has been striving to highlight the concerns of the Textile Mill units of the Northern, Central and Western States. It plays a catalytic role in engaging with all its stakeholders, including the Governments for facilitating growth by resolving unit’s growth concerns on a continuous basis. NITMA handhold both large and MSMEs units through knowledge sharing seminars, Exhibitions and Workshops for Skill training etc… The combined turnover of NITMAs members is approximately Rs. 50, 000 crores and the units directly employs around 5, 00,000 families across the region, enriching their livelihood and growth.
NITMA highlighting the immediate fallout of the ongoing havoc created by the Corona Pandemic (Covid-19) has stated that it has adversely affected the demand of our labour intensive textile sector due to lower footfalls in the market place creating a chain reaction of slump in the textile sector’s entire value chain and also its overall market sentiments.
President NITMA said that this looming crisis has come as a double whammy to the already encumbered textiles sector while its cumulative growth in Textiles Production (IIP) for April 2019– January 2020 was down by (-) 2.1 per cent and Exports of Textiles for April 2019- Feb. 2020 was down by (-) 5.29 per cent.
He said presently the Indian textiles Mills sector is facing its severe financial stress leading to growing NPAs due to continued lower production and decline in exports in the wake of prolonged global slump due to US-China trade war and lack of domestic demand.
He has stated that in the wake of the ongoing crisis of Corona Pandemic (Covid -19) there is a sudden slump in demand and it has drastically lowered the sentiments of the industry leading to uncertain growth prospects for the Textiles sector during 2020.
NITMA has requested the Government that it is important to resolve and overcome this crisis urgently. He said the crisis ridden Textile industry looks forward for adequate and appropriate support from the Government.
He said that supporting this labour intensive sector at this hour of crisis is inevitable to avoid the present situation moving towards a grave NPA crisis, making even the industry’s survival difficult in the near future.
NITMA urges that for resolving the looming crisis the Government should come forward and urgently announce immediate interim relief measure of at least six month’s moratorium on payments of Interest rates and Installments on loans taken by Textile Spinning Mills as an urgent measure to overcome their financial stress and avoid closure of Textile Mills.
