Textile Industry- Managing a Contrived Recession

October 26, 1974 crores) than in the previous year (Rs 199 crores). But a large proportion of these went to existing units as against new units. Besides, almost all the rise in disbursements was under rupee loans. These indicators taken together suggest that a significant part of the higher disbursements probably went to substitute for short-term capital from commercial banks which had become relatively scarce and more expensive. Considering all these factors, even at current prices the overall level of private sector industrial investment in 1973-74 was probably of the same order as in the previous year. For 1974-75, the available data indicate that resources at hand for investment in the private corporate sector would be somewhat higher, but the question is whether the companies would make use of them for creating fixed assets or for building up inventories and for other forms of current consumption. New capital issues by public limited companies during January-September 1974 continue to be lower by about 18 per cent at about Rs 45 crores against Rs 55 crores in the first nine months of 1973. But the retained earnings of companies would benefit to the extent of about Rs 60 crores as a result of the restrictions on dividends. The disbursements of term-lending institutions also continue to go up. IDBI's disbursements during the quarter ended September 1974 are reported to have doubled to Rs 51 crores against Rs 24 crores during the corresponding quarter of 1973.