Govt to finalize National Fibre Policy by year end

01 Dec '10

2 min read

The Centre is likely to finalize the long awaited 'National Fibre Policy' by year end. The policy is expected to eliminate the discrepancies in the tax structure and prices of several fibres.

The proposed bill is now under consideration of the Lok Sabha. As stated by V Srinivas, Joint secretary, Ministry of Textiles, the Union Government is likely to give its final assent to the policy by December end.

Regardless of the large production base of natural fibres including jute, wool and cotton, and artificial fibres, the share of Indian textile industry in the world market is depleting. The policy under consideration, being a composite policy on exports, is seen to remove the discrepancies in the tax structure and pricing.

The official, while speaking on the country's textile exports, said that the Ministry is eyeing the exports to reach $25 billion by end of the current fiscal.

While speaking to the press, after a function held to announce extension of the 'Scheme for Integrated Textile Park' (SITP), he said that with regard to exports, yarn export is depicting good result with all the councils showing an annual rise of 20 percent. Though the overall apparel exports have registered a decline, the ready-made garment (RMG) segment is an exception. It has enabled the sector to attain the export target of $25 billion by close of the current financial year.

The Centre, in a bid to see more textile parks coming up in the country, decided to extend the STIP. Under the Scheme, the government provides finance up to Rs 400 million for setting up a textile park.

The response that the government is receiving for SITP is quite good, Srinivas said, and also revealed that, of the 40 greenfield projects that the central government has approved, 25 have already come into existence.

Lastly, he even stated that, the Karnataka government too has proposed to set up four integrated textile parks.

Fibre2fashion News Desk-India

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