With capacity enhancement and modernisation becoming the buzzword in the textile industry in the post-quota regime, the lack of timely supply of textile machinery by indigenous manufacturers has forced the industry to depend on imported second-hand machinery from Europe and China. | |
| But even this strategy is proving to be a costly affair for mills in the Coimbatore region as the Centre's imposition of 35 per cent customs duty on the imported machinery is hitting hard on their modernisation process. |
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| Addressing the 15th annual general meeting (AGM) of the South India Small Spinners' Association, K R Selvakumar, immediate past president, said the association had requested the Union government to remove the 35 per cent duty on the machinery and provide a level-playing field with the neighbouring textile producing countries such as China, Pakistan and Bangladesh. |
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| "Also, the spinning industry here is plagued by the rising power costs. |
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| Tamil Nadu charges Rs 4.20 a unit as against Rs 3.00 charged in other states. We request the state government to consider reducing the power tariff for spinning units across the state," he said. |
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| The other resolutions passed in the AGM included the issue of removal of the 4 per cent cess on raw cotton procurement and 1 per cent market committee cess on the cotton wastes. |
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