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

Global economic upswing became broader & stronger: IMF

Textiles | On 19th Apr 2018

Global economic upswing became broader & stronger: IMF

The global economic upswing that began around mid-2016 has become...

Courtesy: ITMA

Textiles | On 19th Apr 2018

ITMA 2019 expanding space due to overwhelming response

Due to overwhelming response, the exhibition space has been increased ...

BIDA’s Europe trip to showcase a different Bangladesh

Apparel/Garments | On 19th Apr 2018

BIDA’s Europe trip to showcase a different Bangladesh

The Bangladesh Investment Development Authority (BIDA) is taking a...

Interviews View All

Janak Dhamanwala & Sunil Dhamanwala
Jansun

Moving towards sustainability is also a social change

Abhishek Samdaria
Reflete

GST will certainly reduce a lot of paperwork in future

Ajay Ghariwala
Luthra Group

We are ready to adopt or follow every opportunity

Suresh P Bagrecha

Komal Texfab, founded in 1981, is into manufacturing of knitted fabrics,...

Sandip Bhojani, Manthan Patel

Krypthm Tradelink LLP is a Surat-based manufacturer of westernwear....

Harsh Shah

Established in 1956 with a small beginning, Embee today manufactures a...

Marcel Alberts
Eurofibers

Coating at a fibre level is a practice not usually seen in the...

Larry L Kinn
Suominen Corporation

Larry L Kinn, Senior Vice President - Operations Americas of Suominen...

Johan Berlin
InvestKonsult Sweden AB

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

Vaanee Bhatia
Gritstones Clothing

<div>Delhi-based Gritstones Clothing offers quality and exemplary style...

Igor Chapurin
Chapurin

"Now we can see the Russian trend in international fashion. And Russian...

Amiben Shroff
Shrujan

From its modest beginning in the late 1960s, Shrujan has grown into a...

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

Leave your Comments


April 2018

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

Active Poll

Do you see sustainability as a route to business growth?

Yes
69.9%
No
12.6%
Skip
17.5%

Total Votes: 103

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

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
63.1%
No
29.1%
Skip
7.8%

Total Votes: 103

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

Yes No

Active Poll

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

Yes
87.4%
No
8.7%
Skip
3.9%

Total Votes: 103

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

Active Poll

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

Yes
82.5%
No
7.8%
Skip
9.7%

Total Votes: 103


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