Home / Knowledge / News / Textiles / SIMA hails measures for textile industry in stimulus package

SIMA hails measures for textile industry in stimulus package

08
Dec '08
The Indian textile industry has been passing through an unprecedented crisis during the last two years due to very many factors which started initially with sudden appreciation of rupee against US dollar, later steep increase in raw material coupled with poor off-take for textile products due to global recession, hardening of bank interest rate, steep reduction in export incentives, acute power shortage, etc.

The textile industry associations have been appealing to the Centre to announce suitable relief measures to revive the mother industry from the recession and sustain its survival and regain its competitiveness in the globalised environment.

The various relief measures sought by the industry include two year moratorium for repayment of loans and avoid NPAs, restore export incentives, relax banking norms, refund the Technology Upgradation Fund (TUF) Scheme interest arrears (over one year backlog), exempt fuels meant for power generation from all taxes and levies (considering the acute power shortage which is likely to continue for another three to four years), etc.

Now that the central government has announced several relief measures to stimulate the Indian economy, Dr K V Srinivasan, Chairman, The Southern India Mills' Association has thanked the Central Government particularly the Hon'ble Prime Minister who has taken sympathetic view of the grave situation of the textile industry and announcing various relief measures.

Dr Srinivasan has mentioned that the allocation of Rs.1,400 crores to clear entire TUF arrears and allocation of Rs.1,100 crores to clear CST/TED arrears, additional allocation of Rs.350 crores for export incentive scheme would greatly ease out financial position and help the textile mills to procure cotton during the cotton season.

He has added that 2% interest subvention on packing credits would give marginal relief while 4% is essential to compete in the global market and also considering the substantial increase made by Pakistan and China in the export incentives. He has further said that 4% cut in the ad valorem CENVAT rate across the board would help to reduce the cost of production considerably.

Dr Srinivasan has pointed out that the back-up guarantee for ECGC scheme, refund of service tax on foreign agent commissions upto 10% of FOB value, refund of service tax on output services while availing of benefits under duty drawback scheme would stimulate the exports.

He has said that the removal of import duty on Naphtha for the use in power sector would make the power cost competitive and would greatly benefit the industry which is facing acute power shortage particularly states like Tamil Nadu where the HT industry is currently facing over 70% power shortage.

He has appealed to the centre to exempt the high speed diesel oil meant for captive power generation from all taxes and levies since this is the only option available to states like Tamil Nadu where the power crisis is going to become worse and likely to continue for next three to four years.


Must ReadView All

Pic: Shutterstock

Textiles | On 5th Aug 2020

Procure garments, textiles from domestic firms: Ghana prez

Ghanaian President Nana Addo Dankwa Akufo-Addo recently directed all...

Pic: Shutterstock

Apparel/Garments | On 5th Aug 2020

New COVID-19 wave to threaten Vietnamese garment sector

A fresh wave of COVID-19 may worsen the situation of Vietnam's...

Pic: Shutterstock

Fashion | On 5th Aug 2020

Ralph Lauren Q1 FY20: revenues $487 mn; net loss $128 mn

Ralph Lauren Corporation, a leading designer of of premium lifestyle...

Interviews View All

Asim Dalal, Indo Count Retail Ventures

Asim Dalal
Indo Count Retail Ventures

Today, there is no other emerging market as India, "we make in India and...

Ghanshyam Ghoghari, Kimora Fashion

Ghanshyam Ghoghari
Kimora Fashion

Bridalwear is not about reds and whites anymore

C Kamatchisundaram, Voltas

C Kamatchisundaram
Voltas

ITME is an occasion not only to receive new leads but also to work on...

Sham Shah,

Sham Shah

Shamal and Shamal Pvt Ltd is into manufacturing and sales of textile...

Pietro Turrin,

Pietro Turrin

Industrie Tessili Bresciane (ITB) has served numerous industries and...

Anupam Chakrabarty,

Anupam Chakrabarty

Headquartered in Finland, Helsinki, Lindström Group is a textile rental...

Sven Ghyselinck, Devan Chemical

Sven Ghyselinck
Devan Chemical

Headquartered in Belgium and with offices in the United Kingdom, Portugal...

Mohammad Hassan, Biax Fiberfilm

Mohammad Hassan
Biax Fiberfilm

About one in every 20 patients picks up an infection while hospitalised....

Giulio Cesareo, Directa Plus

Giulio Cesareo
Directa Plus

UK-based Directa Plus is one of the largest producers and suppliers...

Seema Agrawal, Artisan Saga

Seema Agrawal
Artisan Saga

Artisan Saga, founded by Kaushik Rajani and Seema Agrawal, is an online...

Nisha Chanda, Whistling Woods International School of Fashion

Nisha Chanda
Whistling Woods International School of Fashion

<div>A lack of upgraded courses in costume designing and fashion as per...

Akta Adani, India Boulevard

Akta Adani
India Boulevard

India Boulevard is a San Francisco-based curated fashion marketplace that...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


July 2020

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.


Advanced Search