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'Avoid dual pricing for diesel', urge garment exporters
Sep '08
The Union Petroleum Ministry is considering a proposal submitted by State owned oil marketing companies to introduce Dual Pricing for Diesel and by this move higher prices will be charged for Diesel used for Industrial purposes.

In a Press statement issued, Shri. A. Sakthivel, President has said that he has sent a representation to Hon'ble Chief Minister of Tamilnadu requesting to take up the matter with Central Government to avoid the dual pricing for diesel used for industrial purposes and if not request them for giving exemption to exporting units.

Shri. A. Sakthivel has also sent similar representations to Shri. P. Chidambaram, Hon'ble Finance Minister, Shri. Kamalnath, Hon'ble Minister for Commerce and Industry., Shri. Murli Deora, Hon'ble Minister for Petroleum and Natural Gas, Shri. Shankersinh Vagela, Hon'ble Minnister for Textiles and Shri. E.V.K.S Elangovan, Hon'be Minister of State for Textiles. In addition, representations have also been sent to Secretaries of respective Ministries including Chief Secretary of Tamilnadu.

Shri. A. Sakthivel, President press statement:
"May we be permitted to place on record that under your visionary leadership our State is surging forward exponentially with great strides towards the industrialization and appreciable economic growth as the Government has so sincerely and so strenuously fulfilled most of the poll promises and more than that presented three exemplary budgets. We are happy to note that progress of industrial activities in these days marks a new chapter in the history of industrial growth of Tamilnadu.

Sir, we understand that the Union Petroleum Ministry is considering a proposal submitted by State owned oil marketing companies to introduce Dual Pricing for Diesel and by this move higher prices will be charged for Diesel used for Industrial purposes. It is to be noted that the two tiers pricing of diesel will be a detrimental effect on the industries, especially on the exporting units.

May we be permitted to say that already Tamilnadu industries are struggling due to power cut and as an alternative, the industries have resorted for Captive generation, which has ultimately led into increase of manufacturing cost.

The garment exporters, due to their commitment with buyers, could not alter / reduce their production activities also their pricing for any of the reasons and under this circumstances, despite the increase in manufacturing cost due to captive power generation they are manufacturing garments and doing exports it in right time.

The export contribution of textiles and readymade garments units in Tamilnadu is about Rs. 18,000 crores, with a share of 20% of our State exports and out of this, contribution of Tirupur knitwear garment export is more than Rs. 10,000 crores. Sir, the proposal of differential pricing for diesel by Union Petroleum Ministry would certainly affect the exporting units and consequently affect the survival of the units.

With these background, we request the Hon'ble Chief Minister to take up the matter with the Central Government and avoid the proposal of dual pricing for diesel and if not, request them to give exemption for exporting units."

Tirupur Exporters' Association

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