Maran welcomes textiles related budget proposals

27 Feb '10

4 min read

The Minister also thanked the Railway Minister for announcing in her Railway Budget Speech on February 24, 2010 that: “Railways will explore the possibility of using Jute Geo Textiles wherever the soil formation of the railway tract is unsuitable and weak”.

The Budget Proposals which will have a substantial impact on the growth of textiles sector are as follows:

BUDGET OUTLAYS

(1) Central Plan outlay enhanced to Rs.4,725 crore.Out of this, TUFS-Rs. 2,400 crore, SITP-Rs. 350 crore, Handlooms-Rs. 369 crore, Handicrafts-Rs. 319 crore and Sericulture-Rs. 453 crore.

- Allocation for textiles and jute industry is Rs. 3,284 crore and a provision for North States Areas is Rs. 473 crore.

- The total allocation for village and small Enterprises sector which include handicrafts and handlooms is Rs. 968 crore.

Mega Clusters

(2) Rs. 145 crore has been provided for development of Mega clusters in handlooms, handicrafts and powerloom.

CUSTOMS DUTY
(3) ACD @4% for import of readymade garments for retail sales has been withdrawn.

The current limit of Rs. 1 lakh per annum for duty free import of samples has been enhanced to Rs. 3 lakh per annum.

EXCISE DUTY
(4) The micro small medium enterprises in textiles sector have been given full CENVAT credit on capital goods in one installment in the year of receipt of such goods and the facility of payment of excise duty in quarterly basis.

Article of bedding wholly made of full quilted textile material have been exempted from excise duty.

Press Information Bureau

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