Shri P. Chidambaram, Shri Manikam Ramaswami, Chairman, TEXPROCIL said “The Budget has addressed many of the issues faced by the textiles industry”. The Budget has restored the “Zero duty excise duty route” for cotton and manmade sector (spun yarn) at the yarn, fabric and garment stage.
“The zero duty excise duty route will certainly stimulate demand for garments & home textiles which augurs well for the entire textiles sector including made ups & garments” according to Shri Ramaswami.
The Budget has also announced the continuation of the TUF Scheme in the 12th Plan with an investment target of Rs. 151000 crores with a special focus on the Powerloom sector. Further, Companies investing Rs.100 crores or more in plant & machinery during the period 1.4.2013 to 31.3.2015 will be entitled to deduct an investment allowance of 15% of the investment.
“The continuation of the TUF Scheme and Investment allowance will lead to the much needed capacity enhancement and modernization of the textile sector”, said Shri Ramaswami.
The Chairman, TEXPROCIL welcomed the proposal to establish two major ports in West Bengal and in Andhra Pradesh and the development of a new outer harbour in the VOC port at Thoothukkudi, Tamil Nadu which according to him will not only improve the infrastructure for shipment of export cargos but reduce logistics costs.
Shri Ramaswami said the “Integrated Processing Development Scheme” introduced by the Budget will give a fillip to investment & improvement in the infrastructure meant for effluent treatment in the light of growing environmental concerns. .
The Budgetary support for skill development will also lead to an increase in the availability of trained manpower required by the textiles sector according to the Chairman TEXPROCIL.
Shri Ramaswami also welcomed the withdrawal of Export Duty on De-oiled rice bran oil cake which is expected to reduce the cost of Cotton.
With regard to the GST, Shri Ramaswami felt that it should have been implemented at least this year. We hope the GST law will be finalized and implemented at the earliest, said the Chairman TEXPROCIL.
