Saturday, June 25, 2011

25 more textile parks get Centre's nod

The Centre has given consent to 25 new textile parks, Rita Menon, secretary, Union ministry of textiles told reporters on the sidelines of the National Garment Fair organised by the Clothing Manufacturers’ Association of India (CMAI) on Monday.

Menon said the government had received 55 applications. At present, the 40 existing textile parks generate more than Rs 29,000 crore a year. She said during the 12th five-year plan, the government may increase the size of the Technology Up-gradation Fund (TUF) by 25 per cent. Under the TUF scheme, the government will give more incentives to the processing sector.
“We will have our first advisory committee meeting for this particular TUF programme towards the end of June,” said Menon. “I am very enthusiastic about it and I think it will exceed the growth rate of 20 per cent in 2011-12 and with the sort of policy we have got into place, where we are virtually going to offset the cost for consultancy and incubation. We expect technical textile to pan out with our eight centres of excellence and a lot of money and commitment that the government has put in.”
About the new neutral fibre policy, she said the government has to deal with many sub-sections and therefore, it has been delayed.

On the 20 per cent growth target for the technical textiles, Menon said the government would provide all possible support, including financial support, to companies in this field.

On the 10 per cent excise duty on branded ready made garments, she said that upon receiving statistics and a detailed report from CMAI, she would present a strong case before the finance ministry.

Rahul Mehta, president of CMAI, said at the inaugural session of the event that the garment industry was currently facing rough weather with high raw material prices and 10 per cent excise duty. He said he had very high expectations that the fair would break the overall gloomy mood of the industry.

Ashok Shah, chairman of the fair sub-committee, said the performance of the industry would not go down because of the excise duty. “We are expecting more bookings due to the upcoming festive season,” he said.


Post a Comment