SISPA Urged to Finance Ministry
The South India Small Spinners Association (SISSPA) today urged the Finance Ministry to categorise Textile Industry Funding as a priority sector, as it was highly capital intensive when compared to other industries.Expressing concern over the alarming rise in the rate of interest levied by financial institutions in the recent past, SISSPA president R Kuppusamy in a statement said that the Prime Lending Rate by financial instituions has increased from 10 to 14.5 per cent.Due to the increase in the interest rates, the total viability of the spinning sector was in a quandry, he said.
Stating that the industry, which has already implemented their expansion project,was not in a position to service their interest and principle, he said projects which were at the half way mark have stopped, leading to an industrial slowdown.Kuppusamy requested the ministry to intervene in this matter so that the interests of the industry and financial institutions were safeguarded.
