Related Keywords: hire purchase scheme, Indian weaving industry, Weavers
Union Ministry of Textiles to give a major fillip for modernization in the weaving sector a programme has been launched called the ‘Hire-Purchase Scheme’ in the revised restructured Technology Upgradation Scheme (RR-TUFS). A special purpose vehicle (SPV), promoted by a group of weavers, a large-scale textile manufacturer and a co-operative or an entrepreneur, will procure the machines and provide them on a hire-purchase basis to the weavers.
Lease rent attracts 12 per cent service tax, and this should be removed for the scheme so that the SPV can lease out the looms to the weavers.
