The debt restructuring scheme offered by the government of India to convert the high-cost debt of potentially viable textile units into low-cost debt, which has run into difficulties with the designated banks and financial institutions raising doubts about the feasibility of swapping of the debt through external commercial borrowings, has met with another reverse, with the Industrial Development Bank of India making significant alteration in the norms set by the Finance Ministry for the revival package. Under the scheme, which came into effect in mid-September 2003 and had raised high hopes for textile units which were "ailing" or on the way to sickness, the banks and financial institutions were permitted to access external commercial borrowing and to convert rupee term loans into foreign currency loans. The external commercial borrowing would be permitted for five years, though the debtor could repay the restructured loan even later.
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