Home / Knowledge / News / Textiles / New incentive scheme beneficial for textile sector
New incentive scheme beneficial for textile sector
26
Apr '10
The news of a long-pending incentive scheme, by the Department of Trade and Industry, to encourage production in the apparel and textile industry, has been welcomed by apparel and textile producers.

This scheme that is due to be announced in May, will replace the old export scheme, which has already lapsed in March. While the qualifying goods under this old scheme were lowered to seven during the last year, it also turned out to be beneficial only for the exporters.

However, under the new scheme that will be handled by the Industrial Development Corporation (IDC), even the producers will benefit.

Explaining the guidelines under the new initiative, Abisha Tembo, Chief Director, Department of Trade and Industry said, “The new scheme has already been finalised and right now, we are just finalising the guidelines for applicants.

More so, this incentive scheme will be calculated at 10 percent of the value that a producer's manufacturing process will be adding to the raw materials in the entire year. This 10 percent will then be applied as a credit at IDC in the form of a concession on capital and operating capital.”

Tembo also said that, the new initiative is to make sure that the fund generated is utilised in developing the industry and not for other personal gains such as buying motor cars. More so, the treasury for the next three years has granted R1.7 billion of which R400 million will be set aside for the first year alone.

Tembo was doubly sure that the department will receive applications for utilising the complete R400 million in the first year.

As per the figures released by the South African Clothing and Textile Workers Union (SACTWU), in the first quarter till the end of March 2010, 2,360 jobs were slashed, 47 percent of which are in KwaZulu-Natal alone.

However, job cuts in the first quarter of 2010 are far less as compared to the corresponding quarter of 2009, when nearly 4,100 job cuts were reported.

Fibre2Fashion News Desk - India

Must ReadView All

Courtesy: Walmart

Apparel/Garments | On 23rd Mar 2017

Walmart acquires ModCloth

Walmart has acquired the assets and operations of ModCloth, one of...

Textiles | On 23rd Mar 2017

SIMA advises mills to avoid panic buying of cotton

The Southern India Mills' Association (SIMA) is advising mills to...

Apparel/Garments | On 23rd Mar 2017

Tulip Retail, True Fit personalise in-store shopping

Tulip Retail, a mobile application platform built exclusively for...

Interviews View All

Abhishek Samdaria
Reflete

GST will certainly reduce a lot of paperwork in future

Krishnanand Tripathi
Textrade International Ltd

We believe in vocational education for entry-level employees, offering...

Spokesperson
Hugo Boss

'Hugo Boss works with carefully selected sourcing partners'

Paolo Ocleppo
Sandvik Hyperion

Paolo Ocleppo, Rotary Cutting Segment manager, Sandvik Hyperion discusses...

Mohammad Hassan
Biax Fiberfilm

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

Johan Berlin
InvestKonsult Sweden AB

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

Pranav Mishra
Huemn

Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...

Rupa Sood and Sharan Apparao
Nayaab

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

Sonam & Paras Modi
SVA

Sonam and Paras Modi's Sva Couture is synonymous with head-turning...

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

news category


Related Categories:
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