TN to unveil new textile policy soon

The Tamil Nadu government will soon announce a new textile policy to attract more investments and increase employment opportunities in the sector, said chief minister M Karunanidhi.

“The state is at the stage of announcing an attractive textile policy, which will further promote investment and employment in the sector,” he said after presenting the Texprocil Export Awards 2008-09, initiated by the Cotton Textiles Export Promotion Council (Texprocil), here on Saturday.

The state government has given its approval for setting up five integrated textile parks at Kumarapalayam, Cuddalore, Vadipatti in Madurai district, Andipatti in Theni district and Karur.

Stating that the textile sector in Tamil Nadu provided employment to four million people, the chief minister said his government would offer all help to protect the industry.

Speaking on the occasion, textiles minister Dayanidhi Maran said if other state governments offered VAT exemption on cotton resale as done by Tamil Nadu, his ministry would set up cotton depots.

Meanwhile, VS Velayutham, chairman of the council, sought uninterrupted power supply to the sector for meeting export commitments. The industry representatives also urged the ministry to clear the arrears of the two quarters amounting to around Rs 1,500 crore.

Home textiles and finished garments account for 12 per cent of the total exports of over $21 billion (around Rs 96,600 crore). The cotton textile exports, which witnessed 29 per cent growth at one time, declined 10 per cent after the post-quota regime (2005). It registered around $5 billion (around Rs 23,000 crore) last year.

The industry has invested over Rs 1.25 lakh crore over the last seven years. Velayutham said countries like Bangladesh were enjoying good exports growth with the zero duty benefit. “We hope the government would expedite the FTA process with the European Union and expect an agreement between both the countries in a year’s time,” he said.