In order to save the bank loans extended to the cotton spinners from turning into non-performing assets, the Karnataka Textile Mills' Association (KTMA) has demanded a bailout package for spinning mills of the state.
Speaking at the 43rd Annual General Meeting of KTMA, association Chairman C Valliappa said the last financial year proved to be a mixed year for the cotton spinning industry.
While the industry registered record profits for some time, it was later required to curtail its production by 30 percent due to overpiling of yarn stock, he added.
Mr. Valliappa said the Union Budget has extended some incentive support for facilitiating skill development, and hailed the sanction of Rs. 600 million for a package of weavers, that is to be executed by the Ministry of Textiles.
To support the local industry, he requested the state government to extend the benefit of reduced tax rate granted to unginned cotton to ginned cotton also.
Mr. Valliappa noted that in spite of being a key garment production centre, the state does not house many weaving or processing units, mainly owing to pollution concerns.
He proposed setting up of a processing centre in coastal Karnataka, as it would facilitate “marine discharge” and serve as a long term solution to the environment pollution concerns faced by the domestic industry.
Fibre2fashion News Desk - India
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