Spinning Industry: Citing a 50-70% drop in capacity utilization 50% to 70%, the Confederation of Indian Textile Industry (CITI) sought extension of the one-year moratorium for repayment of the principal amount, and conversion of three-year loans under Emergency Credit Line Guarantee Scheme (ECLGS) into six-year term loans.
The government has asked lenders to look at their credit disbursal practises for micro, small and medium enterprises (MSMEs) following complaints of high rate of rejection of their loan applications. A government official said the banks need to respond within a month.
Earlier, the scheme covered MSMEs, hospitality, travel and tourism, leisure and sporting sectors, and 26 stressed sectors identified by the KV Kamath Committee.