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Textile sector demands enhanced TUFs funds
15 Feb '10
2 min read
The textile industry of India has demanded more funds under the Technology Up-gradation Fund Scheme (TUFs), and removal of taxes on man-made fibres to gain more competitiveness and increase domestic consumption.
The government had allocated Rs.31.4 billion for TUFs in the last budget. The Confederation of Indian Textile Industry (CITI) has asked for Rs.20 billion for the TUFS backlog in the year 2009-10 and Rs.30 billion for next fiscal year.
During 2008-09, the industry had suffered drastically due to the impact of global financial meltdown, but started witnessing revival in last 2-3 quarters. The major textile companies, including, Alok Industries, Raymond and Century Textiles & Industries Ltd. recorded higher businesses during Oct-Dec.
In the last annual budget, excise duty on man-made fibres was hiked, from 4 percent to 8 percent. The industry also seeks the exemption of liquid fuels, used for captive power generation by the textile and clothing units, from taxes in order to cut energy costs, said Mr. DK Nair, Secretary General of CITI.
Moreover, an export credit at a uniform rate of 5 percent interest to the textile and apparel units has also been demanded by the industry entrepreneurs. At present, these units are enjoying export credit at 8 percent interest.
The government had allocated Rs.31.4 billion for TUFs in the last budget. The Confederation of Indian Textile Industry (CITI) has asked for Rs.20 billion for the TUFS backlog in the year 2009-10 and Rs.30 billion for next fiscal year.
During 2008-09, the industry had suffered drastically due to the impact of global financial meltdown, but started witnessing revival in last 2-3 quarters. The major textile companies, including, Alok Industries, Raymond and Century Textiles & Industries Ltd. recorded higher businesses during Oct-Dec.
In the last annual budget, excise duty on man-made fibres was hiked, from 4 percent to 8 percent. The industry also seeks the exemption of liquid fuels, used for captive power generation by the textile and clothing units, from taxes in order to cut energy costs, said Mr. DK Nair, Secretary General of CITI.
Moreover, an export credit at a uniform rate of 5 percent interest to the textile and apparel units has also been demanded by the industry entrepreneurs. At present, these units are enjoying export credit at 8 percent interest.
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