Moneycontrol
Jul 09, 2012 05:52 PM IST | Source: CNBC-TV18

RBI not to relax NPA norms for textile companies

There is some bad news for textile companies. The Reserve Bank of India (RBI) has struck down a proposal to relax NPA norms for textile companies, even after it was announced as a part of the much publicised debt restructuring package sector.


There is some bad news for textile companies. The Reserve Bank of India (RBI) has struck down a proposal to relax NPA norms for textile companies, even after it was announced as a part of the much publicised debt restructuring package sector.


The RBI has intimated the finance and textile ministries about its decision, who in turn have convened a meeting on July 13 to asses the RBI's stand. The only silver lining is that the central bank has given its nod for a 2 year moratorium on term loans and converting eroded working capital into term loans of 3 to 5 year period.


Till now, the textile ministry has got debt restructuring applications worth Rs 10,000 crore, out of which applications worth Rs 2,000 crore have been filed for NPA relaxation.

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