The scheme follows the introduction of a mechanism to recast debt portfolios of viable and potentially viable textile units mooted in the budget.
The scheme has also been extended to units with a minimum debt exposure of Rs 2 crore. Besides there is no change in the total amount of debt exposure which stands at Rs 6,000 crore against Rs. 10,000 crore estimated earlier. The contraction of debts has been due to high interest at 15-16 per cent on loans earlier availed by the units. Now, the repayment can be made at 8 to 9 per cent interest.
The differential is sought to be bridged by allowing banks to raise external commercial borrowings at lower interest for a period of five years only.