Texprocil, a government constituted body for export promotion of cotton textiles submits to Finance Minister Arun Jaitley in a pre-budget memorandum lists measures which can boost exports and provide employment to over two lakh people in India especially women.
Surat textile entrepreneurs, the country's biggest man-made fibre hub has welcomed the proposal that the government planned to simplify the Technology Upgradation Fund Scheme (TUFS) and allocate to it Rs 2,500 crore in this financial year.
With the textile industry set to achieve a $50 billion export target, the TUFS scheme is likely to play a major role by improving infrastructural facilities and creating a skilled manpower for the sector. Modernization in the MMF textile hub, which started a few years ago, is geared up to get a major boost in 2014-15.
With various problems being faced by small spinners, President, K Thirunavukkarasu of South India Spinners Association (SISPA) has urged Textile Commissioner Kiran Sony Gupta to make sure that quality raw material, cotton is made available at reasonable price level without much instability.
SISPA wants the textile ministry to maintain a stock to use ratio of 50 lakh bales of cotton stock till the end of the cotton arrival season to meet the needs of the spinning sector.
Cotton Textiles Export Promotion Council of India (Texprocil), a government constituted body has put forward their proposal to reinstate the benefit as investments made during the 18 month gap are eligible investments before and after extension of the TUFS with the Indian Textile Ministry They have assured that if the government accepts the sector’s demands in the forthcoming Budget and should the Rs 1,000 crore of TUFS money surrendered is given back to the textile industry, the textile industry would invest up to Rs 4,000 crore and set in motion the process of capacity creation 50
The textile industry occupies a unique place in India and with the textile industry setting target of USD 50 billion exports this financial year. Technology upgradation, better infrastructure and skilled manpower are a must to achieve the set target.
The forthcoming first Budget 2014-15 of the new government in India is likely to enhance incentives to the labour-intensive textile industry which will boost its exports and manufacturing productivty.
The government may increase allocation for the Technology Upgradation Fund Scheme (TUFS) in the Budget as part of the support to the textiles sector. TUFS was launched in 1999 to facilitate modernisation and upgradation of the textiles industry by extending credit at lower interest rates to entrepreneurs both in the organised and the unorganised sector.
TUFS facilitates modernisation and upgradation of textiles industry by providing credit at reduced rates to entrepreneurs both in the organised and the unorganised sector in the textiles industry. The Textile ministry to benefit small units in the powerloom sector will be introducing hire-purchase scheme under TUFS.
The Indian powerloom sector has around 43 lakh weavers who are in severe need of modernisation and the ministry is hopeful that this hire-purchase scheme will benefit them as each machinery costs Rs 20-30 lakh.
The Government to tackle impede faced by the textile sector had proposed a debt restructuring package for the textiles industry continues to remain grounded, as textile mills, garment and processing units are worried that any further restructuring would render their bank loans into non- performing assets (NPAs). Moreover, it would disallow them from gaining benefits under the Technology Upgradation Fund Scheme and push up their borrowing costs.
A study by the Associated Chambers of Commerce and Industry of India (Assocham) reveals that textile sector in India is under crises with Tamil Nadu accounted for 54 per cent of the non-operative mills, followed by Gujarat (16 per cent), Maharashtra (10 per cent), Punjab (four per cent) and Uttar Pradesh (three per cent). The study was based on a comparative analysis between FY00-01 and FY10-11 and an annual survey by the statistics and programme implementation ministry.
