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Uttar Pradesh to frame new textile policy
05
Sep '08
Recently, Dr. V. Rajagopalan, IAS, Principal Secretary, SSI & Textiles, Govt. of Uttar Pradesh met a group of eminent textile mill owners, industrialists, garment manufacturers and garment exporters at NITRA. The meeting was held to seek once again the industry's opinion before finalizing the revised draft textile policy (2008-13) for Uttar Pradesh.

In this context it may be recalled that in December 2005, Govt. of U.P. had assigned to NITRA the task of preparing the textile policy. In order to accomplish the same, NITRA interacted with textile entrepreneurs and trade bodies in UP such as Indian Industries Association & UP Powerloom Federation (both Kanpur), All India Carpet Manufacturers Association (Bahdoi), Eastern UP Exporters Association (Banaras), Chamber of Industries (Gorakhpur), UP Kangar Bunkar Union & Powerloom Bunkar Union (both Tanda), Powerloom Vastro Utpadak Association (Meerut), and Niwan Nirmata Sangh (Modinagar).

NITRA also discussed with CEOs of leading textile companies of UP like Alps Industries Ltd., Ginni Filaments Ltd, Gajroula Spinning Mills, and a host of textile professionals, garment manufacturers/garment exporters in and around U.P. After collecting their views, NITRA compiled and submitted the same in the form of draft U.P. Textile Policy 2006-11.

The referred meet was held as a sequel to the exercise already made, so as to give a fresh look to the matter under the changed circumstances and prepare the policy for 2008-13. The suggestions emerged from the deliberations held on 28th July are given in this issue.

New Draft of UP Textile Policy:

1) UP textile policy should be framed keeping the policy guidelines of Tamilnadu (being the most developed state in India) in terms of different sectors of textiles - organized mills sector, handloom, powerloom, knitting, and garments.
2) In view of the changing scenario of textile trade in India over last couple of months, it is suggested to have a second round of discussions with veteran industrialists and technical experts to take their opinion for incorporating in the policy
3) In line of the removal of VAT on yarn, readymade garments should also be exempted from VAT.
4) Adequate supply of good quality of electricity power is to be ensured.
5) Subsidized power for power loom sectors to be continued.
6) For organized sector, instead of providing subsidized charges (electricity charges per unit), low cost electricity charges should be proposed which may be less than the present charges by a certain percentage.
7) Amendment of age old lopsided labour laws – urgently required.
8) In view of high cotton prices and high yield in recent years, techno-economics of cotton cultivation in UP can be assessed so as to eliminate dependence on cotton procurement from far off places.
9) Infrastructure like road and transportation should be improved in Noida as the place houses huge number of garment export units.
10) As Noida is a garment hub, fabric is mostly procured from other states. Some kind of freight subsidy should be given.

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