Indian govt extends sops to textile machinery sector

18 Feb '14

2 min read

The Government of India has reduced the Central Excise Duty by 2 percent on textile machinery and also increased the allocation under the Technology Upgradation Fund Scheme (TUFS), to boost modernization of the textile industry.

“To stimulate growth in the capital goods and consumer non-durables, I propose to reduce the excise duty from 12 percent to 10 percent on all goods falling under chapter 84 and chapter 85 of the Schedule to the Central Excise Tariff Act for the period up to 30.6.2014,” Finance Minister P Chidambaram said in his Interim Budget 2014-2015 speech in Parliament.

However, the Minister added that the rates can be reviewed at the time of the regular Budget, which would be presented by the new Government that takes office after the scheduled General Elections later this year.

Analysing the announcements made in the Interim Budget, Mr. Rajendran, CFO of Lakshmi Machine Works (LMW) told fibe2fashion, “The outlay for TUFS has been increased to Rs. 24 billion for 2014-15 from Rs. 19.56 billion in the ongoing fiscal year.”

Commenting on the decision to cut excise duty, Mr. Rajendran said, “We welcome the decision to reduce excise duty to 10 perent on textile machinery, although it will give only a small push to the industry.”

Fibre2fashion News Desk - India

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