SIMA demands immediate roll back of diesel prices

SIMA Chairman has stated that India is already in a disadvantage position in the international textile market due to high cost of inputs which is to the tune of 20% when compared to countries like Bangladesh as per a study conducted by the industry associations.  He has pointed out that the textile industry which has earned over $ 37 Bn during the year 2011-12, the single largest foreign exchange earner of the country would further lose its competitive edge in the global market due to the diesel price hike which is one of the major inputs for the textile production in terms of energy and transport.

SIMA Chief has informed that the industry has been pleading for the past several years exempting all the fuels meant for captive power generation from all fiscal levies till the country becomes self sufficient on power front.  He has stated that such exemption is essential to sustain the global competitiveness and ensure achieving inclusive growth and the centre has failed to consider the genuine demand resulting in job losses for several millions.

When the Government of Tamil Nadu is actively considering for VAT exemption for high speed diesel oil meant for captive power generation, the abnormal hike in diesel prices would sound death knell for the textile industry.

Mr Dinakaran has appealed to the Hon'ble Prime Minister to immediately rollback the price hike in the interests of over 91 million people jobs in the textile industry.  He has also appealed to the Hon'ble Chief Ministers of Southern States particularly Tamil Nadu and Andhra Pradesh which are starving for power to put pressure on the centre to withdraw the diesel price hike and also to exempt the diesel oil from VAT to avoid mass closures of industrial units resulting in severe industrial and social unrest.

SIMA