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| Plan for new textile policy |
| BS Reporter / Chennai Mar 03, 2010, 00:47 IST |
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Tamil Nadu plans to announce an “attractive textile policy” soon to attract more investments and increase employment opportunities in textile sector, said Chief Minister M Karunanidhi.
Meanwhile, the industry representatives have asked the Union Textile Ministry to clear the two quarters’ arrears of around Rs 1,500 crore at the earliest.
After presenting TEXPROCIL Export Awards 2008-09, initiated by Cotton Textiles Export Promotion Council, in Chennai on Saturday, the Chief Minister said "the state is at the stage of announcing an attractive Textile Policy which will further promote investment and employment in the sector."
He added the state has given approval for setting up five integrated textile parks at Kumarapalayam, Cuddalore, Vadipatti in Madurai District, Andipatti in Theni District and Karur has boosted textile investment in state.
The Chief Minister also called on investors from other states and countries to invest in the state textile industrial units and assured them of all necessary assistance from the government.
Noting that the textile sector in Tamil Nadu provided employment to four million people, the Chief Minister said his government would do its utmost to protect the industry.
Union Minister for Textiles Dayanidhi Maran said if other state governments offered exemption for resale of cotton from levy of VAT as done by Tamil Nadu, his Ministry would come forward to set up cotton depots.
Meanwhile V S Velayutham, chairman of the council, has requested the Tamil Nadu government for an uninterrupted power supply to the sector in the coming weeks for meeting its export commitments.
Manikam Ramaswamy, vice-chairman of the Council, said the organisation was taking steps to develop new markets that were less hit by the global recession. Velayutham added, we should expedite the process of free trade agreement (FTA) with the European Union (EU) as well as offer incentives for the exports of value-added goods such as home textiles, garments to regain the lost cotton textile exports during the last few years.
“The textile ministry should also look into clearing the two quarters’ arrears of around Rs 1,500 crore to the industry at the earliest”, the council said. While talking to reporters he said home textiles and finished garments are holding 12 per cent of the total textiles exports of over $21 billion (around Rs 96,600 crore) and EU accounts for close to 30 per cent or around $7 billion (around Rs 32,200 crore) market potential. The cotton textile exports which at one point of time witnessed 29 per cent growth came down, after post-quota regime (2005 onwards), by 10 per cent during last year ended up around $5 billion (around Rs 23,000 crore).
Ramaswami said lack of incentives for exports and wrong government policies are considered to be prime reasons for the same. The industry, which has invested over Rs 1.25 lakh crore over the last seven years is highly skilled and technologically superior as compared to the developed and other export countries. India also holds low-cost and high quality advantage. With the zero duty benefit with EU, countries like Bangladesh have been enjoying good exports growth over the years. “We hope the government would expedite the FTA process with EU and expect an agreement between both the countries in a year’s time,” he added.
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