Hyderabad: Telangana industries minister K.T. Rama Rao on Sunday wrote to Union textile minister Smriti Irani putting forward several suggestions to rescue the textile industry from the crisis caused by the lockdown.
He said he had been interacting with members of the textile industry both in Telangana and outside. “The common refrain is that recovery will be very slow and contingent upon the western world commencing regular operations. Several companies have seen their orders cancelled and shipments put on hold and are facing zero revenues and cash flows for the next 4-6 months in the best-case scenario.”
Rama Rao expressed worry about the coronavirus impact on the livelihoods of millions of workers, and asked the Union minister to provide textile industries wage support of up to 50 per cent for up to six months in the form of a long-term loan that the industry would need to repay in installments over a stipulated period.
The Telangana minister noted that India ranked sixth in the world in textile and apparel exports, which were worth about $36 billion. Handlooms contribute about $350 million to this every year.
He suggested allowing the textile industry a one-time extension of three months for depositing statutory dues of PF and ESI which would release some cash for operations.
Stressing the need for banking support to the textile industry, he suggested facilitating higher temporary credit facilities to meet the cash losses during the lockdown to enable the industry to meet its obligations towards its vendors and statutory payments....