Crisis ridden textile sector is set to get a boost in the interim budget this year. With exports in the free fall mode, government is likely to give in to exporters’ demand of increasing draw back rates by 2 per cent. Further, allocation of funds under Technology Upgradation Fund Scheme may also go up largely with a view to reduce waiting period.
Sources in the ministry of textiles said that government is convinced that more needs to be done for the sector despite the two stimulus packages that have been announced so far.
“The industry is disappointed by the provisions in the two packages and a lot more needed to be done,” said a ministry official. “Ensuring that job losses are minimal, the interim budget will have measures to help exports in the sector.”
With investments to the tune of Rs 1 lakh crore on the verge of turning into non performing assets, the government is also considering a proposal for one year moratorium for term loans in the sector and availing export credit at 7 per cent interest.