Home / Knowledge / News / Textiles / Textile mills seek stimulus package, duty-cut on MMF
Textile mills seek stimulus package, duty-cut on MMF
05
Sep '11
The Southern India Mills' Association (SIMA) has urged the Government to devise a stimulus package aimed at revival of the textile units and to reduce duty imposition on man-made fibres (MMF).

After his election as the new Chairman of SIMA, Mr S. Dinakaran, Joint Managing Director of Sambandam Spinning Mills, said the industry has been grappling against a number of issues like soaring cost of raw inputs, power crunch, labour scarcity, uneven Government policies and rising interest rates.

He stated that in the past five months itself, the spinning industry in the country has suffered a loss of Rs. 150 billion.

In reference to the earlier requests made by SIMA to the PM, different ministries and the RBI, Mr. Dinakaran once again repeated the demand for allowing the mill owners a moratorium period of two years for repaying all loans and interests.

He said that even those mills which chose to streamline their business or benefited from such facilities during 2008-09 financial crisis should also be allowed such moratorium period, besides making eroded working capital into long term loans, cutting down on margin money, etc.

The new SIMA head called for the PM's intervention in connection with a textile industry stimulus package to safeguard investments worth about Rs. 2000 billion made under the Textile Upgradation Fund Scheme (TUFS) and thereby to protect jobs of most of the workers engaged in the industry. He also sought swift execution of the National Fibre Policy.

Talking about MMF, Mr. Dinakaran demanded a total rollback of five percent import duty and four percent special additional duty, and reduction in Central excise duty from present 10 percent to four percent, so as to raise the affordability of garments and to give the local manmade fibre mills a level playing field with countries like China.

He further demanded that the obligation with regard to hank yarn should be nullified and reeling parks should be set up in all leading handloom hubs to enable process of conversion of cone yarn into reeling yarn.

The SIMA Chief urged the Chief Ministers of the Southern States to slash the Value Added Tax (VAT) on cone yarn to two percent, pending implementation of General Sales Tax (GST). He also asked them to tackle the issue of southern load despatch centre corridor so as to help the industries to benefit from the open access system.

Fibre2fashion News Desk - India


Must ReadView All

IOC, MCPI to set up ₹1000 cr PSF unit in Odisha

Textiles | On 23rd May 2018

IOC, MCPI to set up ₹1000 cr PSF unit in Odisha

Indian Oil Corporation (IOC) has teamed up with Materials Chemicals...

Courtesy: Marks and Spencer

Apparel/Garments | On 23rd May 2018

M&S to close 14 Clothing & Home stores by 2019

Marks & Spencer (M&S), a leading British multi-national retailer,...

Garment products dominate across textile businesses: FESPA

Textiles | On 23rd May 2018

Garment products dominate across textile businesses: FESPA

Garment products dominate across all textile businesses, with sports...

Interviews View All

Dinaz Madhukar
DLF Emporio and DLF Promenade

‘Each event and promotion is planned out keeping in mind the business of...

C Kamatchisundaram
Voltas

ITME is an occasion not only to receive new leads but also to work on...

Abhishek Ganguly
Puma India

‘As a brand, Puma is always looking for new and innovative ways to inspire ...

Harsh Shah

Fynd is the central online shopping destination for fashion, offering...

Nitesh Mittal

Kusumgar Corporates is a leading manufacturer of technical textiles and...

Tom Adeyoola

Describing itself as the best body shape and garment fit company in the...

Kerem Durdag
Biovation II LLC

Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...

Mohammad Hassan
Biax Fiberfilm

About one in every 20 patients picks up an infection while hospitalised....

Larry L Kinn
Suominen Corporation

Larry L Kinn, Senior Vice President - Operations Americas of Suominen...

Rupa Sood and Sharan Apparao
Nayaab

Nayaab, an exhibition meant to celebrate Indian weaves, is in its second...

Aditi Somani
Aditi Somani

Aditi Somani specialises in luxury fusion wear with international cuts and ...

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


May 2018

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Advanced Search