South firms seek import duty waiver

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.

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.

"Also, the spinning industry here is plagued by the rising power costs.

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.

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.