Confederation of Indian Textile Industry (CITI) has welcomed the relief package announced by Finance Minister in Parliament on 29th November 2007 for the textile sector. In a statement issued here, Shri P.D. Patodia, Chairman, CITI stated that reduction of customs duty for man-made fibre and the additional subvention for packing credit will help the industry, but only in a limited way.
Over 75% of textile exports of India consist of cotton products and CITI's request for reducing import duty on cotton to 5% has not been conceded. In the case of packing credit since a cap of 7% has been stipulated, most units will get less than 2% subvention in practice.
Shri Patodia stated that the major step required on the part of the Government to help the industry to handle the Rupee appreciation problems is to refund State level duties amounting to about 6% of the value of exports.
In its meeting with Honourable Prime Minister, CITI had requested that the State level duties at 6% may be refunded to exporters through drawback route or through duty free scrips.
A request had also been made to declare a moratorium of one year for repayment of principal amounts against all term loans taken by textile and clothing industry so that cash flow of the units could be improved in the short-term and the possibilities of loans turning into NPAs could be avoided.
These issues need the urgent attention of Government. Shri Patodia expressed the hope that Government will address these important issues at the earliest.
-Ltd..jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Thermore (Far East) Ltd.")
.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Telangana State Industrial Infrastructure Corporation Limited (TSllC Ltd)")
.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Taiwan Textile Federation (TTF)")
