Home / Knowledge / News / Textiles / 'Exclude spinning sector from purview of TUFs' - SIMA
'Exclude spinning sector from purview of TUFs' - SIMA
Mar '12
Amongst its main demands, the Southern India Mills Association (SIMA) has suggested exclusion of the spinning sector from the purview of TUF Scheme, considering the under utilization of existing spinning capacity and mismatch in the supply-demand.

It has also requested removal of 5% customs duty and 4% special additional duty and reduce the 10% central excise duty on manmade fibre to 4% with optional route on par with cotton textiles in its pre-budget recommendations put up before the Finance Ministry.

SIMA has also requested the Ministry to extend the restructured TUFs for the entire 12th five year plan period. It also asked that the Ministry to provide benefits for the black out period between June 29, 2010 and April 27, 2011, when the TUF was suspended and suggested that this period could be considered in the old format.

In the new TUFs, only shuttle-less looms have been given 10% capital subsidy. However, since the main weakness in weaving sector stems from lack of investment in modern weaving preparatory machines, it has suggested that capital subsidy be extended to weaving preparatory machines also.

It has suggested that manufacturer and exporters of yarn be permitted to fulfill the export obligation fixed under EPCG scheme by exporting fabric and garment as well (value added products) which would encourage vertical integration.

Since the export of cotton yarn had been banned during 2010-11, it has recommended that spinning mills should be exempted from the obligation and average to be fulfilled for the financial year 2010-11.

Among other demands, it has demanded that the excise duty on automatic looms and projectile shuttle-less looms should be withdrawn to encourage technology up-gradation in this sector.

SIMA has also sought exemption from mandatory cost audit for textile mills, since the details sought during the audit is available in the documents filed under the Companies Act.

Fibre2fashion News Desk - India

Must ReadView All

Textiles | On 30th May 2017

CAI estimates 2016-17 cotton crop at 340.5 lakh bales

Cotton Association of India (CAI) has retained its earlier estimate...

Courtesy: World Bank/Claude Renault

Textiles | On 30th May 2017

India’s economic fundamentals remain strong: World Bank

India remains the fastest growing economy in the world – economic...

Courtesy: Dollar Industries

Apparel/Garments | On 30th May 2017

Dollar Industries registers Rs 906 cr turnover in FY17

Hosiery major Dollar Industries Limited registered a turnover of Rs...

Interviews View All

Angelina Francesca Cheang

'Consumers in the age-group 21 to 38 are driving the activewear trend'

Neel Sawhney
One Friday

‘The share of kidswear segment in the online sector is still small in...

Karan Suratwala
Key Textile Accessories Private Limited

Chinese imports are destroying the supply chain

Lynda Kelly
Suominen Corporation

Suominen Corporation is a manufacturer of nonwovens as roll goods for...

Kevin Nelson

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Eamonn Tighe
Nature Works LLC

Eamonn Tighe, Fibres and Nonwovens - Business Development Manager of...

Wendell Rodricks
Wendell Rodricks

"We should not compare India and the West. There are things we do that...

Igor Chapurin

"Now we can see the Russian trend in international fashion. And Russian...

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies


news category

Related Categories:
May 2017

May 2017

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


Browse Our Archives


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search