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SGCCI urges Gujarat govt to frame TUFS-like textile policy
May '12
Mr. Paresh Patel
Mr. Paresh Patel
The Southern Gujarat Chamber of Commerce and Industry (SGCCI) has requested the state government to create a special policy to help technological upgradation in India's largest man-made fibre (MMF) industry.

Speaking to fibre2fashion, Mr. Paresh R Patel, the newly appointed President of SGCCI, said, “The Government of Gujarat should formulate a policy similar to the Technology Upgradation Fund Scheme (TUFS) of the Central Government.”

“Such a scheme should accommodate the small and medium enterprises (SMEs). Since the textile industry in Surat consists mainly of SMEs, any scheme formulated for the textile industry in Gujarat should concentrate on SMEs and MSMEs,” he adds.

“Technological upgradation is mainly required by small enterprises. We have approached the Gujarat government for the same,” he informs.

Earlier this week, Gujarat Chief Minister Narendra Modi had announced that his government is in the process of formulating a textile policy based on 5Fs – farm, fibre, fabric, fashion and foreign.

The aim of the policy would be to turn Gujarat in to a manufacturing hub for exporting readymade garments across the globe. It would also ensure that the entire manufacturing process from production of cotton to apparels is carried out within the state.

Mentioning an issue troubling the Surat MMF industry, Mr. Patel said, “The value-added tax (VAT) rate on natural gas is affecting the Surat textile industry, which uses natural gas for its manufacturing activities.”

“An increase in the cost of gas results in a rise in the cost of production. So, we have requested the government to relax VAT on natural gas by at least 3-4% and bring it down to a single digit from the existing 12+2.5% VAT structure in Gujarat. Doing so would help the textile industry that depends on natural gas for production,” he avers.

Mr. Patel, who is also the promoter of the Central Government-sponsored Textile Park at Ichhapore, says, “The new textile park would have international standard infrastructure, 40 feet wide road, water facilities and other amenities. The basic idea is to promote Ichhapore as a new site for textile manufacturing.”

The MMF industry in Surat has been concentrating on the Indian market so far. The SGCCI is now requesting the state government's support in developing exports to international market.

Fibre2fashion News Desk - India

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