Home / Knowledge / News / Textiles / Undeserving will not have access to textile revival funds – Govt
Undeserving will not have access to textile revival funds – Govt
30
Jan '10
Government is going to ensure that none other than the affected companies are benefited from the stimulus package to be declared for sick textile industry.

Mr. Boniface Mphetlhe, Deputy Permanent Secretary in the Ministry of Trade and Industry, said that they cannot discard the possibilities that few companies may gain by false pretences, but added that if any such incidence occurs, it will be duly taken care of.

The bailout scheme is meant to help the companies to subsist the damage caused due to economic downturn, while simultaneously moderating the job losses in textile sector. The Ministry was engaged in finalizing details of the scheme and same will be communicated to the industry, shortly, Mr. Mphetlhe informed.

There is no obligation on the Government to assist the companies, but industry requires support to deal with nationwide problems like unemployment and universal economic development, he stated.

Mr. Mphetlhe said that, the stiff budget for 2010-11 extends a clue towards the government's ongoing struggle to overcome the effects of economic meltdown. However, assistance has been rendered to diverse sectors of the economy, to accelerate economic revival.

The companies are seeking comprehensive Southern African Customs Union (SACU) duty credit certificates, utility and rent subsidy, sale and export incentives in addition to machinery and soft loan working capital. SACU duty credit certificate is an export stimulus plan intended for assisting the textile and clothing firms to become globally competitive.

Credit certificates are granted depending on the value of export sales. The profit margins are based on the export product. For example, exporters of clothing earn a profit of 25 percent of the export sales value, whereas the same ratio is eight percent in respect of yarn exporters, 12.5 percent for fabric exporters and 17.5 percent for household textiles.

The certificates can be exercised either to counterbalance the duty on imported raw materials or the same can be traded with other manufacturers for similar use.

SACU was involved in formulation of a long term policy for country's textile and clothing industry which will replace the textile and clothing industry development programme. The policy was aimed at development of a strategy, compliant with the World Trade Organization (WTO) rules, Mr. Mphetlhe informed.

Fibre2fashion News Desk - India


Must ReadView All

Textiles | On 22nd Jul 2017

Govt constitutes GST Feedback and Action Room

The Government of India has constituted a Feedback and Action Room...

Textiles | On 22nd Jul 2017

India’s cotton textile exports fell in FY17: Tamta

The overall export of cotton textiles from India declined in 2016-17...

Textiles | On 22nd Jul 2017

Stella McCartney, Bolt Threads partner for eco fashion

Fashion designer Stella McCartney has partnered with Bolt Threads for ...

Interviews View All

Evelyne Cholet
UCMTF

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

Binoy Ravjani
Hero's Fashion

‘One of the recent trends in hand block printing is the indigo process,...

Cindy McNaull
Cordura

We have broad range of options in durable fabrics

Ashok Desai
Bombay Textile Research Association

Bombay Textile Research Association (BTRA) is a leading name in textile...

Kerem Durdag
Biovation II LLC

Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...

Silke Brand-Kirsch
Schlegel und Partner

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

Silvia Venturini Fendi
Fendi s.r.l

"Yes, my confidence and positive attitude are my strengths and should be...

Ritu Kumar
Label Ritu Kumar

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

Rupa Sood and Sharan Apparao
Nayaab

Nayaab, an exhibition meant to celebrate Indian weaves, is in its second...

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

July 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

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

Yes No

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

Yes No

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


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



X