Home / Knowledge / News / Textiles / 'Budget has not addressed key issues' - Shri R.K. Dalmia
'Budget has not addressed key issues' - Shri R.K. Dalmia
06
Jul '09
Shri R.K. Dalmia, Chairman, CITI
Shri R.K. Dalmia, Chairman, CITI
Shri R.K. Dalmia, Chairman, CITI has welcomed the substantial increase in allocation for Technology Upgradation Fund Scheme.

The allocation has been increased from Rs.1090 crore last year to Rs.3140 crore this year. Because of inadequate budget allocation, there has been a backlog of more than one year in disbursements of TUFS assistance. Shri Dalmia stated that increase in budget provision would be able to remedy this situation substantially.

Reintroduction of 4% optional excise duty for cotton textile products is also a welcome step since this would allow textile companies to use cenvat credit on capital goods, dyes and chemicals, packing materials etc.

Shri Dalmia also welcomed extension of 2% interest subvention on export credit from September 2009 to March 2010 but added that the industry was expecting the subvention to be restored to the original rate of 4% which has not been done. Abolition of fringe benefit tax and commodity transaction tax are also welcome features of the Budget, Shri Dalmia added.

Referring to the negative proposals in the Budget, Shri Dalmia pointed out that mandatory excise duty on man-made fibres, filaments and their raw materials has been increased from 4% to 8% which would make fibres even more uncompetitive than they already are. Increase of MAT from 10% to 15% on book profit will also have a negative impact, though very few companies in the textile sector are making profits right now. On service tax, certain services have been exempted and in the other services, the procedure for reimbursement has been simplified by introducing self-certification and certification by Chartered Accountants. Shri Dalmia hoped that this would take one irritant out for the exporters.

While increased allocation for integrated textile parks and announcement of two mega parks for handlooms and powerlooms are welcome, the benefit of these measures would take a while to materialize.

Shri R.K. Dalmia stated that nothing has been done in the Budget to address the important issues of power cost and working capital cost that the textile and clothing industry is facing.

Shri Dalmia stated that the Budget was a missed opportunity for Government to pull the export oriented and labour intensive T&C industry out of its current crisis. The proposals are a mixed bag of certain positive steps and certain negative steps and these do not have the potential to bring the industry back to the path of growth in production as well as exports.

CONFEDERATION OF INDIAN TEXTILE INDUSTRY (CITI)


Must ReadView All

Courtesy: American Silk Mills

Textiles | On 18th Oct 2017

Sutlej Textiles adds American Silk Mills to its portfolio

Sutlej Textiles and Industries Ltd (STIL) has announced the...

Arvind Limited executive directors Punit Lalbhai (left) and Kulin Lalbhai explaining the project to Gujarat chief minister Vijay Rupani. Courtesy: Arvind Ltd

Apparel/Garments | On 18th Oct 2017

Arvind to set up mega apparel facility in Gujarat

Arvind Limited, one of India’s largest textile to retail...

Cotton stocks accumulating everywhere outside of China

Textiles | On 18th Oct 2017

Cotton stocks accumulating everywhere outside of China

Global cotton stocks outside of China are expected to rise by nearly...

Interviews View All

Saket Garg
Garg Corporation

The biggest challenge is lack of skilled workforce and competition from...

Evelyne Cholet
UCMTF

‘France had a reputation of being big in new ideas, but poor in marketing...

DK Sharma
Velocity Apparelz

We constantly communicate with employees at all levels

Suresh P Bagrecha

Komal Texfab, founded in 1981, is into manufacturing of knitted fabrics,...

Liz Manning

<div><b>Liz Manning</b>, Business Development Manager at Catexel, has...

Abhishek Pachauri

Reckon Industries adapts latest systems for manufacturing from designing...

Suresh Patel
Sidwin Fabric

Sidwin Fabric is a manufacturer and exporter of polypropylene textiles and ...

Kevin Nelson
TissueGen

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

Mohammad Hassan
Biax Fiberfilm

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

Karan Arora
Karan Arora

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

Sidharth Sinha
Sidharth Sinha

<b>Sidharth Sinha</b> has contributed to the successful rebirth and...

Judy Frater
Somaiya Kala Vidya

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

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

October 2017

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

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
77.6%
No
13.4%
Skip
9.0%

Total Votes: 67

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
61.2%
No
28.4%
Skip
10.4%

Total Votes: 67

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
85.1%
No
10.4%
Skip
4.5%

Total Votes: 67

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
74.6%
No
11.9%
Skip
13.4%

Total Votes: 67


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