Textile Industry: Another Fund

Another Fund The N K Singh committee has proposed an asset reconstruction fund for the textile industry with a corpus of Rs 3,000 crore. The fund is aimed at helping heavily indebted mills to swap existing expensive loans with cheaper funds for their modernisation projects. It will cover all segments of the industry and will have a government-guaranteed alternative debt recovery procedure. A seed capital of Rs 500-800 crore is to be provided by the government and the balance amount is likely to be raised through infrastructure bonds and external borrowings. The package, if it comes through, is likely to be included in the next budget.