CITI urges government to rescue textile industry

05 Nov '08

6 min read

Mr. Dalmia stated that the reduction effected in drawback rates should be restored and the rates should be increased by another 2% so that State level duties which are not being refunded by Central Government or State Governments would at least get partly offset. He also stated that interest subvention of 4% which Government had initially announced for the period up to 31st March 2009 and subsequently withdrawn from 1st October 2008 onwards, should be reinstated at least for the originally announced period.

Mr. V.K. Ladia stated that Textile units are facing serious problem of repayment of long-term loans. The solution is to allow mills to pay the installment in a manner by which a total amount is paid and balance is added in the balance period of loan. Further the total loan period may be extended from 10 years to 12 years under TUFS. He added that another problem of industry is goods held on stocks of raw material, goods in process of finished goods. The solution is to approach the suppliers of raw material to change prices effective from beginning of a quarter of a year.

Confederation of Indian Textile Industry

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