The Hindu Business Line : Rs 77-cr relief package for Gujarat units

The Centre today announced a Rs 77-crore relief package for the 5,845 textile units in Surat that suffered severe damage during the floods in August this year.

The Union Textile Minister, Mr Shankersinh Vaghela, said it was the "first-ever" such effort undertaken by his Ministry to put the textile hub in Gujarat back on rails and disbursement of relief would start in two weeks' time.

The units had suffered major losses on account of damage of machinery, raw material, finished goods, buildings, furniture and production-related losses.

The funds will be made available to the Ministry of Home Affairs under the Calamity Relief Scheme and the Textile Commissionerate, Mumbai, has been appointed as nodal agency to carry out the task.

Cabinet approval

The Union Cabinet approved the package last week that would benefit between 1.5 and 2 lakh people affected directly or indirectly by the floods, Mr Vaghela told a news conference here today.

About 40 teams of Textile Ministry officials, comprising nearly 200 officers from across thecountry, surveyed 95,000 production machinery units in a loom-wise, door-to-door survey and decided to rehabilitate 87,000 affected looms.

The survey found that the machinery had suffered losses to the tune of Rs 85 crore. The financial requirement was estimated to be about Rs 56 crore in respect of calamity relief package and Rs 21 crore for interest subsidy for working capital loan package.

Under the calamity assistance to textile units, looms will be paid aid between Rs 6,000 and Rs 50,000 per loom while processing, embroidery and special finishing machines will get Rs 1.50 lakh per unit. Other textile units will be paid Rs 2,500 per machine.

Under the working capital loan to flood-affected textile units, the package has sanctioned a working capital loan of Rs 37,000 per loom (which is working capital for three months) by the banks at preferential interest rate of five per cent for one year. Commercial establishments may also be given similar relief of working capital loan.

Revised norms

Under the revised norms for NPA in case of flood-affected units, the loan obtained by a flood-hit textile unit, under TUFs or otherwise, would not be treated as NPA in case of non-payment up to a period of six quarters. Additionally, the moratorium period of loan under the TUFS scheme has been increased by a further two years. The units will not have to pay interest during this period under TUFS.

More Stories on : Textiles | Natural Calamities | Gujarat

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page