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India:Textile Ministry’s initiative to
modernize textile industry |
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2004-12-22
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With a view to modernize 80% of the market yards and to bring 100% of ginning units under the purview of Cotton Technology Mission (CTM), the Indian textile ministry has made a presentation to the Prime Minister last week, in which the ministry has sought additional budgetary allocation of over Rs 300 crore to double the target of the mission.
Currently the CTM has around Rs 150 crore, and aims to modernize 122 market yards and nearly 500 ginning units. But the ministry is aiming to cover 230 market yards and over 1,000 ginning units with the new budgetary allocation.
To enhance the global competitiveness of the textile industry, the ministry is preparing a comprehensive policy roadmap. It has asked for a stable fiscal regime for the sector, in the context of the revamp of the excise duties in the last two Budgets.
Proposal has also been made to increase the scope of the Technology Upgradation Fund Scheme (TUFS) through higher budgetary allocation and increase the interest incentive by 3% more. The synthetic textiles sector will start getting TUFS benefits soon.
Further, Apparel Export Promotion Council (AEPC) has also proposed a new tax incentive scheme for apparel exporters. The proposal enables exporters to deposit 25% of the income tax they are liable to pay to the government. In turn the government would issue infrastructure bonds, against the balance, which could be redeemed after five years at 2% interest rate. The funds generated through this shall be utilized for infrastructure development, and help Indian industry, which is expecting 30% growth in the next fiscal.
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