Textile machinery's 11th Plan period investments to rise Rs1, 40,000 cr
16 Mar '07
2 min read
Textile machinery sector is expected to attract an investment of Rs1, 40,000 crore in 11th Plan period resulting into pushing up country's textile and garment exports from the present $12 bn to $40 bn.
To achieve the target substantial increase in capacity building would be required in domestic textile machinery manufacturing sector, says a vision statement of Confederation Indian Textile Industry (CITI).
Textile machinery industry's installed capacity at present is Rs3,050 crore, which was Rs2,212 crore in 2005-06 and Rs1,684 crore in previous year.
Machinery imports during this period stood at Rs7,100 crore and Rs3,393 crore, respectively, which reflects doubling of demand.
Meanwhile domestic production of machinery fell from 33 percent to 24 percent, the document states.
Domestic production recorded growth of 31 percent but lack of technology upgradation in some areas has failed to benefit the sector.
Textile engineering industry has estimated an investment of about Rs5,000 crore for plant and machinery during 11th Plan period which will result into production of Rs10,000 crore by 2012.
Textile Ministry has drawn a plan to achieve the objective and encourage modernisation by releasing more funds under TUF Scheme.
The scheme, which was to expire on March 31, has been made co-terminus with the 11th Plan by the finance minister in the 2007-08 Budget.
Customs duty on man-made fibres (MMF) has been slashed and central sales tax has been brought to 3 percent to help reduce fabric production and transaction costs.
TUF scheme has been extended to handloom sector to increase competitiveness of the sector.
Increased allocation for integrated textile parks will help meet increasing domestic demand and build additional capacities to meet export demand.