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

Courtesy: Li & Fung

Textiles | On 29th Mar 2017

Li & Fung introduces new 3-year plan 2017-2019

Li & Fung Limited has outlined its next Three-Year Plan (2017-2019)...

Courtesy: Carrington

Apparel/Garments | On 29th Mar 2017

Carrington Workwear signs JV with TMG Textiles

Carrington Workwear, one of the largest producers of workwear fabrics ...

Apparel/Garments | On 29th Mar 2017

Jabong launches Aeropostale on its platform

Jabong has added leading American high-street fashionwear brand,...

Interviews View All

Abhishek Ganguly
Puma India

‘As a brand, Puma is always looking for new and innovative ways to inspire ...

Ajay Ghariwala
Luthra Group

We are ready to adopt or follow every opportunity

Frank Gossmann
Rotorcraft AG

‘RT3 motto is: Do not check millimetres, check colours.’

Urs Stalder
Sanitized AG

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

Kai Poehler
Voith Paper GmbH & Co. KG

The glass mat industry is growing by five to eight per cent annually. Kai...

Kevin Nelson
TissueGen

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

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer <b>Prathyusha Garimella</b> is known for blending ...

Ritu Kumar
Label Ritu Kumar

‘Classics will return’ "There are a lot of people wearing western clothes ...

Robert Brunner
Devereux

Golfwear and menswear brand Devereux is set for greener pastures. Robert...

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
March 2017

March 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