Vol VI Issue No.2 June 15, 2004
 

Chairman's Message


M. Senthil Kumar
CHAIRMAN

     The on-set of the new Government at the centre, has infused a considerable amount of optimism in the industry circles. As the powerloom textile industry is going through a difficult period on account of imposition of CENV A T and other difficulties, it is hoped that the new Government will be able to provide necessary relief to the industry, so that it could set the industry in order from the current turmoil. As you are well aware, imposition of CENV A T duty on unprocessed fabrics w.e.f. 1 st of March, 2003, has taken the powerloom textile industry out of its gear. It has disturbed the very foundation of the industry and it is therefore not surprising that in most of the production centres, 40% to 50% of the units have closed down, affecting deliveries to the domestic as well as to the international markets.

          The PDEXCIL in its pre-budget Memorandum to the Government has made a number of suggestions. But the most prominent of which is the abolition of CENV A T on unprocessed fabrics. The PDEXCIL has pointed out that if CENV AT is removed completely on unprocessed fabrics, it would enable the industry to bounce back and expand its, level of output. It has also suggested abolition of basic and additional excise duty totally on cotton yarn, the basic raw material to the industry. Apart from the above, it has proposed reduction in the excise duty on processed fabrics to a uniform level of 5%. The PDEXCIL has also strongly pleaded for restoration of tax benefit under the section 80 HHC of the Income Tax Act. As far as extension of credit to the small scale powerloom sector is concerned, the PDEXCIL has urged the Government to consider this sector as a priority sector and meet its financial needs. Since the industry requires funds for modernisation purpose, it has urged to extend soft loans at favourable terms. It is hoped that the Government will consider all these suggestions and come out with appropriate Budget Proposals for 2004-2005 to provide necessary fillip to the industry.

     The Government is also considering revision of the EXI M Policy to provide necessary policy framework to the industry. The PDEXCIL is currently formulating its suggestions in this regard. There is an urgent need to recast the EXIM policy altogether in order to provide more emphasis on small scale sector. Since the small scale sector which covers powerloom textile industry, is the backbone of the economy, it is imperative to provide necessary facilities and benefits to this sector so that these small industries could emerge as large scale industries in due course. What is currently needed is appropriate schemes for development of the small scale powerloom textile industry.

     The industry suffers on account of inadequate infrastructural facility. Power is one of the major constraints. If necessary infrastructural facility is provided to the industry, it would be able to maintain its production schedule.

     The industry also suffers from lack of adequate finance for carrying out upgradation of its technology and also measures to improve the quality of the products. If the policy covers suitable solutions to these problems, it would help the industry a great deal to come out of its present shortcomings. Emphasis also needs to be laid on simplification of the procedures involved so that the procedural hurdles are not encountered. The policy therefore needs to be broad-based to cover all aspects.

    I am sure that the new Government will lay down a broad-based, a rational and a progressive policy for the benefit of the industry and trade, so that there will be an all-round growth in the industrial sector in general and in the textile industry in particular.

 



M. SENTHIL KUMAR
Chairman

 

TECHNOLOGY UPGRADATION FUND SCHEME (TUFS)
THE TEXTILE INSTITUTE 83RD WORLD CONFERENCE
TRADE NOTIFICATIONS
CIRCULAR NO. 2
FOCUS : AFRICA
MARKETING DEVELOPEMENT ASSISTANCE SCHEME (REVISED GUIDLINES W.E.F. 1.4.2004)
SUBMISSION OF MONTHLY EXPORT RETURNS
HOUSEHOLD TEXTILES
PICKING
REQUISITES IN PREPARATORY FOR SHUTTLELESS WEAVING
SEMINAR ON INTERNATIONAL MARKETING (FOCUS ON EXPORTS OF TEXTILES)
GROUP WORKSHED SCHEME FOR DECENTRALIZED POWERLOOM WEAVING INDUSTRY