Giving a patient hearing to the memorandums and petitions made by various sections of the industry, the minister called for joint efforts to find solutions for the problems that have been haunting the industry for long.
Maran said he has set a vision for the sector “to create one crore employment opportunities, build world-class state-of-the-art manufacturing capacities, achieve a dominant global standing in the manufacture and export of textiles & clothing, and equip the textiles industry to withstand the pressure of import penetration as well as maintain its dominance in the growing domestic market’’.
Promising a national fibre policy, he said, “Our country is endowed with natural fibres like cotton, wool, silk and jute. The availability of these raw materials has enabled the creation of a vibrant textiles industry. However, these have also created conflicting interests between stakeholders. It is time for a comprehensive National Fibre Policy to reconcile conflicting interest. The ministry will initiate consultation process immediately to design a National Fibre Policy. I need inputs from all stakeholders and request industry to come forward to form a single forum’’.
Hinting at a relief package for the industry Maran said, “The ministry will take steps in the short, medium and long-terms to provide relief to the industry. As part of a short-term strategy, in the coming 100 days the government would strive to infuse funds in Technology Upgradation Fund Scheme (TUFS), rationalise fiscal structure, exempt service tax, reduce interest rates on pre & post-shipment credit and facilitate faster clearance of arrears of terminal excise duties and central sales tax.”
The government would impart momentum to the implementation of TUFS, scheme for integrated textile park and develop technical textiles. “There is a need for improvement in the infrastructure & labour law reforms, and create a new business orientation by the industry in line with the global trends,” he added.
Southern India Mills’ Association (SIMA) deputy chairman J Thulasidharan requested for a comprehensive package for the textile industry to make it the most vibrant sector.
According to him, from the beginning of 2007, the unprecedented global economic meltdown coupled with various negative steps initiated by the government like 40% increase in the minimum support price (MSP) of raw cotton, 5% export incentive for cotton exports, bulk discount offered by CCI, drastic reduction in export incentive, heavy backlog in government dues, hardening of bank interest rates etc, have paralysed the performance of the Indian textile industry. Even the best performing mills in the country have incurred huge losses for the last two years. Under these circumstances, the industry needs a comprehensive bailout package to bring the industry back on wheels and achieve the investment target of Rs 1,55,000 crore, 7 to 8% growth and creation of 10 million new jobs, as set by minister. He called for immediate action on issues related to cotton man-made fibres and requested for the streamlining of the export incentives.
Simpler working capital norms, especially for cotton at 7% interest rate as against PLR at present, reduction in the margin money from 25% to 10% and increase in the credit limit period from six months to nine months was also sought.
In order to increase the use of synthetic man-made fibres, SIMA called for the withdrawal of import duty and central excise duty, including their intermediaries, so as to benefit the weaker section of people. Since cotton textiles have become expensive, the poor can afford synthetic textiles only. Currently, the consumption of cotton and synthetic textiles in India is in the ratio of 60:40 as against the reverse globally.
With a view of facing power crisis, especially in Tamil Nadu, SIMA pitched for withdrawal of excise and customs duty on all liquid fuel meant for power generation by the textile industry. It is essential for Tamil Nadu, which accounts for 1/3rd of the textile business in the country, as it faces 50% power shortage. The trend is likely to continue for another three years, Thulasidharan said.
