Interviews
SIMA welcomes textile clusters in Bhiwandi & Erode
05 Mar '08
3 min read
The earmarking of Rs.450 crores for Scheme for Integrated Textile Park (SITP) and Rs.1090 crores for Technology Upgradation Fund Scheme (TUF) was only a routine announcement, as the TUF and SITP had already been extended for the entire 11th Five Year Plan period, remarked Dr K V Srinivasan.
He further pointed out that the allocation of fund for TUF in the budget, was sufficient to meet only the backlog and would not meet the future demand.
He regretted the efforts put in by the industry as well as the government during the last couple of years to make the industry globally competitive, achieve the targeted growth rate investments and creation of new employment for over 15 million people, have gone in vein and the budget has totally ignored the textile industry.
On the contrary, the Budget has withdrawn shuttleless looms from the exemption list of Central Excise / CVD and has levied 8% duty.
Dr Srinivasan has mentioned that this would totally discourage any investment in the weaving sector, which is a weakest link in the textile value chain and would seriously affect the development of powerloom sector and various textile parks in the country.
SIMA chairman further said that the Union Budget has also not considered the recommendations made by the different Work Groups of Texsummit 2007, a national conclave organized by Ministry of Textiles, wherein the Hon'ble Prime Minister had participated and promised to take necessary steps to sustain the competitiveness of the Indian textile industry in the globalized arena.
However, SIMA chief welcomed the announcement of textile clusters for development of powerlooms in Bhiwandi and Erode, which is the only welcoming feature in the Union Budget for the textile industry.
He further pointed out that the allocation of fund for TUF in the budget, was sufficient to meet only the backlog and would not meet the future demand.
He regretted the efforts put in by the industry as well as the government during the last couple of years to make the industry globally competitive, achieve the targeted growth rate investments and creation of new employment for over 15 million people, have gone in vein and the budget has totally ignored the textile industry.
On the contrary, the Budget has withdrawn shuttleless looms from the exemption list of Central Excise / CVD and has levied 8% duty.
Dr Srinivasan has mentioned that this would totally discourage any investment in the weaving sector, which is a weakest link in the textile value chain and would seriously affect the development of powerloom sector and various textile parks in the country.
SIMA chairman further said that the Union Budget has also not considered the recommendations made by the different Work Groups of Texsummit 2007, a national conclave organized by Ministry of Textiles, wherein the Hon'ble Prime Minister had participated and promised to take necessary steps to sustain the competitiveness of the Indian textile industry in the globalized arena.
However, SIMA chief welcomed the announcement of textile clusters for development of powerlooms in Bhiwandi and Erode, which is the only welcoming feature in the Union Budget for the textile industry.
Southern India Mills Association (SIMA)
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