Sharma to review textiles industry performance tomorrow

Amid crisis in Tirupur over closure of 1,000 textiles units, Commerce and Industry and Textiles Minister Anand Sharma has decided to hold a review of the performance of the various segments of textiles industry tomorrow.

The minister would meet the ministry's senior officials along with various stakeholders of the sector, including Confederation of Indian Textiles and Industry, Texprocil and Apparel Export Promotion Council.

"The main issue of discussion will be as to how to reopen the units in Tirupur that were shut down on court orders for violation of pollution norms," an official said.

In January this year, the Madras High Court had ordered the closure of dyeing and bleaching units in Tirupur for discharging effluents polluting the Noyyal river.

According to the official, another important issue that is likely to come up during the discussion would be whether to allow further exports of cotton in the current cotton season.

In June this year, the government decided to allow exports of an additional 10 lakh bales (170 kg each) of natural fibre during the current season ending September.

Last year, the government had fixed a quantitative cap of 55 lakh bales on exports of cotton in the 2010-11 season.

Besides, the industry has been demanding restoration of the tax incentive-duty drawback on cotton yarn.

"We would request the minister to restore the tax incentive, which was withdrawn last year due to high prices, since prices have drastically come down now," a CITI official said.

Under the scheme, the exporters were getting 4% reimbursement of the incidence of customs and excise duties levied at the input stage of the product concerned.