Home / Knowledge / News / Textiles / 'We were expecting comprehensive package from budget' - SIMA Chief
'We were expecting comprehensive package from budget' - SIMA Chief
16
Feb '09
The Indian textile industry is passing through an unprecedented crisis due to global financial melt down, high bank interest rates, over 45% increase in Minimum Support Prices for cotton, acute power shortage in States like Tamil Nadu etc.

The industry has been appealing to the Centre to announce a comprehensive package for the textile industry on par with competing countries like China and Pakistan to revive the industry from the recession and sustain its survival. 7/12 and 2/1 stimulus packages announced by the Government came out with only Government dues and few cosmetic changes which are totally inadequate for the industry to face the cut throat competitions in the global market.

Therefore, the industry was hoping a special package in the interim Budget so that the industry could survive till the next Budget.

Dr.K.V.Srinivasan, Chairman, The Southern India Mills' Association (SIMA), says that interim Budget announced by the UPA Government is totally disappointing for the textile industry. He has said that the industry was expecting bare minimum sops in the interim Budget and a comprehensive package either in the forthcoming stimulus package or the next Budget.

He has added that the Government could have considered two year moratorium period for repayment of loans to avoid NPAs and working capital package for cotton purchase consisting of 7% interest rate, reduction of margin money from 25% to 10% and enhanced credit period to 9 months. He has further said that the usual proportionate allocation of funds for TUF Scheme was also missing in the Budget.

He has pointed out that though the Government had indicated that Rs.1,400 crores allocation in the first stimulus package would meet TUF backlog upto September 2008, the actual allocations would meet only the backlog upto June 2008 and even in that many may not get their reimbursement fully. He has remarked that this would further affect the working capital for the textile industry.

SIMA Chairman has mentioned that the Centre could have exempted liquid fuels meant for power generation from Central Excise, Customs and other levies, considering the acute power shortage prevailing in the country, particularly in States like Tamil Nadu where the textile industry is facing over 60% shortage. He has pointed out that the above measure will not have any financial implication on the Centre since it is only a notional income.

Dr.Srinivasan has mentioned that the only notable feature of the interim Budget is the extension of existing 2% interest subvention for textile export credits till September 2009.

SIMA Chief has feared that many units might be closed in the absence of minimum relief packages throwing several lakhs of people out of jobs. He has pointed out that the textile industry which is the second largest employment provider in the country next to agriculture particularly for the people below the poverty line and therural women folk could have been given due weightage to sustain its survival and also compete with textile majors like China, Pakistan, Bangladesh, etc.

Southern India Mills' Association

Must ReadView All

Textiles | On 29th Apr 2017

Textile sector may have uniform GST rate: Irani

The textile sector could have a uniform Goods and Services Tax (GST)...

Textiles | On 30th Apr 2017

Government revamping tech mission on cotton

Indian Government is working to revamp the technology mission on...

Apparel/Garments | On 30th Apr 2017

Columbia Sportswear records Q1 net sales of $543.8 mn

Columbia Sportswear Company has announced record net sales of $543.8...

Interviews View All

Sunil Kumar Sharma
Loknayak JPNSSSG Ltd

'The blend of cotton–linen yarn has high demand in the domestic and...

Prabu Mohanram
Balavigna Weaving Mills Pvt Ltd

The biggest challenge that the weaving industry faces is high price

Abhimanyu Singh Rathore & Barbara Anna Kosiorek
Kannbar

‘Blending cultures is the true beauty of fashion, where one’s imagination...

Kevin Nelson
TissueGen

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Urs Stalder
Sanitized AG

Urs Stalder, CEO, Sanitized AG, talks about the increasing use of hygiene...

Mohammad Hassan
Biax Fiberfilm

About one in every 20 patients picks up an infection while hospitalised....

Sonam & Paras Modi
SVA

Sonam and Paras Modi's Sva Couture is synonymous with head-turning...

Wendell Rodricks
Wendell Rodricks

"We should not compare India and the West. There are things we do that...

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

news category


Related Categories:
April 2017

April 2017

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

SUBSCRIBE


Browse Our Archives

GO


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search



X