Home / Knowledge / News / Textiles / TUFs subsidy helps textile mills to ease out working capital substantially, SIMA
TUFs subsidy helps textile mills to ease out working capital substantially, SIMA
07
Aug '09
Shri J.Thulasidharan (Deputy Chairman)
Shri J.Thulasidharan (Deputy Chairman)
The Indian Textile Industry has been passing through an unprecedented crisis during the last two years due to global economic melt down, steep increase in raw material cost, acute power shortage in States like Tamil Nadu, hardening of bank interest rate etc.

The textile mills which had undergone substantial modernization, expansion and green field projects under TUF Scheme were the worst affected due to the undue delay in reimbursement of TUFS arrears over two years. These textile mills had completely eroded their working capital and starving for funds. SIMA had made a representation to the Hon'ble Union Minister of Textiles, Thiru Dayanidhi Maran at the interaction meeting organized by the Association on 16th June 2009 at Coimbatore wherein Hon'ble Minister had promised to address the issue in the Budget.

Accordingly, Rs.3,140 crores was allocated in the Budget to clear the arrears. The Association also had suggested formulating a National Fibre Policy to have a long-term solution for the raw material. Now, the Hon'ble Minister has addressed both the issues.

Shri J.Thulasidharan, Deputy Chairman, The Southern India Mills' Association (SIMA), has thanked Hon'ble Union Minister of Textiles, Thiru Dayanidhi Maran for addressing the long pending issue in a single stroke. He has highly appreciated the maiden efforts put in by the Hon'ble Minister to credit the individual beneficiaries bank accounts within 72 hours. This will greatly help the textile mills which have been seriously suffering for want of funds and ease out the working capital substantially.

The banks used to take considerable time and delay in refunding the interest subsidy and putting hardship to the textile mills. Shri Thulasidharan has said that the announcement would give enough confidence to the entire textile industry to make further investments.

SIMA Deputy Chief has also thanked the Hon'ble Minister for formulating a 41 Member Committee to draft the National Fibre Policy under the Chairmanship of Textiles Secretary. The Indian textile industry does not have a healthy competition in the global market due to inconsistent policy and high incidence of duties on textile fibres.

Since raw material accounts for 50 to 60% of the cost of production a sound Policy is very essential to sustain the competitiveness of the Indian textile industry which works on a wafer thin margin but providing the second largest employment in the country, next only to agriculture, particularly for the people below the poverty line and rural womenfolk.

The ratio of cotton and synthetic fibre consumption in India is 60 : 40 as against the reverse across the globe. Since synthetic material clothe predominantly poor section of the people, it is very essential to draft a suitable policy to make synthetic and its blended textile products available at an affordable price to the people below the poverty line. Proper policy is also required for cotton to enable the Indian textile industry to compete with the countries like China and Pakistan. Therefore, SIMA has been pleading the Centre to announce a National Fibre Policy.

Must ReadView All

Textiles | On 20th Jan 2017

Bangladesh could earn $60 billion in exports by 2021

Bangladesh is expected to earn over $60 billion in exports by the...

Textiles | On 20th Jan 2017

Xeros to focus on textile sector to develop technology

Xeros technology group plc, the developer and provider of patented...

Apparel/Garments | On 20th Jan 2017

Nine West acquiring womenswear marketer Kasper Group

US based footwear, accessories and denim company Nine West Holdings...

Interviews View All

Yash Agarwal
Hitansh Online

Every market region has its own culture and trends

Marazban F Velati
Sutlej Textiles & Industries limited

No training can be effective till the candidate believes in it.

Mukesh Agarwal & Rajesh Agarwal
Madhuram Fincap Pvt Ltd

Increasing prices and lack of demand main issues facing industry

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Johan Berlin
InvestKonsult Sweden AB

Investkonsult Sweden AB has been buying and selling second-hand textile...

Silke Brand-Kirsch
Schlegel und Partner

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

Karan Arora
Karan Arora

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

Tony Ward
Tony Ward

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

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


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH
January 2017

January 2017

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

SUBSCRIBE


Browse Our Archives

GO


eNEWS
Insights
Subscribe today and get the latest News update in your mail box.
Advanced Search