Home / Knowledge / News / Textiles / Tamil Nadu textile sector gets relief from Govt measures
Tamil Nadu textile sector gets relief from Govt measures
10
Dec '12
Tamil Nadu textile industry, accounting 1/3rd of the country’s textile business, employing over 50 lakh people, accounting 47.5% of the spinning capacity and the hub for global textile business has been seriously suffering owing to unprecedented crisis faced by the industry during 2010-11. The acute power shortage prevailing in the State since 2008 has added to the woes of the industry. 

Mr S Dinakaran, Chairman, SIMA has stated that he met the Hon’ble Chief Minister today at Chennai and submitted a memorandum seeking various relief measures to revive the ailing textile industry from the crisis and regain its global competitiveness. He has stated that the Hon’ble Chief Minister gave a patient hearing to the submissions and promised to take necessary steps immediately. He has mentioned that the Hon’ble Chief Minister has also assured to sustain the competitiveness of the Tamil Nadu textile industry and avoid any investment migrating to other States.

SIMA Chairman has profusely thanked the Hon’ble Chief Minister for extending the VAT exemption on furnace oil meant for captive power generation up to 31st May 2013, which expired on 30th September, 2012. Mr. Dinakaran has stated that this would greatly benefit many large scale textile mills having furnace oil captive power plants to mitigate their power crisis.

He has also thanked the CM for reducing the VAT on diesel gensets from 14.5% to 5% and also reducing the margin money for TIIC loan from 20% to 10%. SIMA Chairman has stated that the benefits given for diesel gensets would largely help the Small and Medium textile mills, power loom units, etc., to generate captive power and minimize the losses.

SIMA Chief stated that the Association has also sought two-year VAT holiday on cotton cone yarn and high speed diesel oil meant for captive power generation.  Mr. Dinakaran has said that 5% VAT on cotton cone yarn makes the textile mills in Tamil Nadu uncompetitive when compared to the textile units in other States which are able to procure yarn with 2% CST.

He has added that Tamil Nadu spinning mills are also not able to compete with the mills in neighbouring States, particularly Andhra Pradesh which sell their yarn in Tamil Nadu with 2% CST.  Mr. Dinakaran has stated that the VAT holiday for two years would enable the mills in Tamil Nadu to sustain its competitiveness. He said that Hon’ble Chief Minister was positive both on VAT holiday on cotton cone yarn and high speed diesel oil meant for captive power generation and promised to take steps shortly.  

Southern India Mills Association

Must ReadView All

Courtesy: Myntra

Apparel/Garments | On 3rd Dec 2016

Myntra to be EBITA positive by FY18: CEO Narayanan

Myntra is on track to achieve sustainable growth and be EBITA...

Courtesy: India ITME Society

Textiles | On 3rd Dec 2016

India ITME 2016 opens with over 1050 exhibitors

The India International Textile Machinery Exhibition (India ITME)...

Courtesy: Bruckner

Textiles | On 3rd Dec 2016

Indian textile companies opt for Brückner stenter lines

Indian textile firms Laxmipati Sarees, makers of polyester sarees and ...

Interviews View All

Nitin Soni
Dolphin Jingwei Machines

Taxation policies need to be made simpler

Viral Desai
Zenitex Mill Pvt Ltd

Full of green energy

Veronique Lee
Modavanti

‘Sustainable fashion is trending upwards, slowly but surely, as people...

Kevin Nelson
TissueGen

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

Larry L Kinn
Suominen Corporation

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

Johan Berlin
InvestKonsult Sweden AB

Investkonsult Sweden AB has been buying and selling second-hand textile...

Ritu Kumar
Label Ritu Kumar

‘Classics will return’ "There are a lot of people wearing western clothes ...

Sonam & Paras Modi
SVA

Sonam and Paras Modi's Sva Couture is synonymous with head-turning...

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


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH
December 2016

December 2016

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

SUBSCRIBE


Browse Our Archives

GO


Advanced Search