Home / Knowledge / News / Textiles / SIMA hails measures for textile industry in stimulus package
SIMA hails measures for textile industry in stimulus package
Dec '08
The Indian textile industry has been passing through an unprecedented crisis during the last two years due to very many factors which started initially with sudden appreciation of rupee against US dollar, later steep increase in raw material coupled with poor off-take for textile products due to global recession, hardening of bank interest rate, steep reduction in export incentives, acute power shortage, etc.

The textile industry associations have been appealing to the Centre to announce suitable relief measures to revive the mother industry from the recession and sustain its survival and regain its competitiveness in the globalised environment.

The various relief measures sought by the industry include two year moratorium for repayment of loans and avoid NPAs, restore export incentives, relax banking norms, refund the Technology Upgradation Fund (TUF) Scheme interest arrears (over one year backlog), exempt fuels meant for power generation from all taxes and levies (considering the acute power shortage which is likely to continue for another three to four years), etc.

Now that the central government has announced several relief measures to stimulate the Indian economy, Dr K V Srinivasan, Chairman, The Southern India Mills' Association has thanked the Central Government particularly the Hon'ble Prime Minister who has taken sympathetic view of the grave situation of the textile industry and announcing various relief measures.

Dr Srinivasan has mentioned that the allocation of Rs.1,400 crores to clear entire TUF arrears and allocation of Rs.1,100 crores to clear CST/TED arrears, additional allocation of Rs.350 crores for export incentive scheme would greatly ease out financial position and help the textile mills to procure cotton during the cotton season.

He has added that 2% interest subvention on packing credits would give marginal relief while 4% is essential to compete in the global market and also considering the substantial increase made by Pakistan and China in the export incentives. He has further said that 4% cut in the ad valorem CENVAT rate across the board would help to reduce the cost of production considerably.

Dr Srinivasan has pointed out that the back-up guarantee for ECGC scheme, refund of service tax on foreign agent commissions upto 10% of FOB value, refund of service tax on output services while availing of benefits under duty drawback scheme would stimulate the exports.

He has said that the removal of import duty on Naphtha for the use in power sector would make the power cost competitive and would greatly benefit the industry which is facing acute power shortage particularly states like Tamil Nadu where the HT industry is currently facing over 70% power shortage.

He has appealed to the centre to exempt the high speed diesel oil meant for captive power generation from all taxes and levies since this is the only option available to states like Tamil Nadu where the power crisis is going to become worse and likely to continue for next three to four years.

Must ReadView All

Union textiles minister Smriti Irani addressing at the Texprocil Annual Export Awards. Courtesy: PIB

Textiles | On 22nd Oct 2016

Govt to extend special package to home textiles segment

The Central government is likely to extend the recently approved Rs...

Reebok Liquid Speed Grey. Courtesy: Business Wire

Apparel/Garments | On 22nd Oct 2016

Reebok’s Liquid Factory brings sneaker creation to US

Reebok, a pioneer in the sporting goods industry, has brought sneaker ...

Courtesy: GHCL

Textiles | On 22nd Oct 2016

GHCL to invest Rs 67.25 crore in textile division

Chemicals and textiles firm GHCL will invest Rs 67.25 crore in its...

Interviews View All

Claudia Kersten
Global Organic Textile Standard

‘GOTS is a very efficient supply chain management tool, especially for...

Riddhika Shah
SS Homme

'Worsted wool is the ideal fabric for menswear'

Rahuul Jashnani

‘Online economy has changed the whole dynamics of buying habits.’

Lynda Kelly
Suominen Corporation

Suominen Corporation is a manufacturer of nonwovens as roll goods for...

Silke Brand-Kirsch
Schlegel und Partner

Silke Brand-Kirsch, executive partner of Schlegel und Partner, a leading...

Larry L Kinn
Suominen Corporation

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

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer Prathyusha Garimella is known for blending...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies

October 2016

October 2016

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


Browse Our Archives


Advanced Search