| Experts say it will create a negative impact on two major upcoming projects--the Rs 400 crore project of the Apparel Exporters Association of Ludhaina and the Rs 1,800 crore Ludhiana Integrated Textile Park. |
| Union Textile Minister Shankar Singh Vaghela assured entrepreneurs during his last visit during TEXTECH 2005 that the TUF was going to stay after 2007, maybe in some other form. The industry is even apprehensive of getting grant of rs 360 crores from the government, under TUF. |
| While speaking to Business standard, APPEAL Apparel Exporters association of Ludhiana's Managing Director Sanjeev Gupta said, "The government's move would be a big blow for the entrepreneurs, especially while competing with the likes of China in the international market. It's time to lend a supporting hand to the smaller segment. Its going to hit major projects here as well." |
| Textile industry here have come strongly against it and have aways . "Even for our Rs 1,800 crore project LITP, its going to create a negative impact. So far we have been encouraging SME's to set up there shops here and many of them have agreed to be part of such projects. Things can deteriorate now more over SME's have not been able to use it in a proper way. We are still in a process of educating them about this. So far the things were going in a very proper way , now when the entrepreneurs are ready to invest in our projects, it can ruin the entire efforts. Even if this happens the grant of Rs 360 crores will be affected under TUF scheme," said Sarjeevan Knitwear, managing director and exective member of LITP, Sudershan Jain. |
| Its also felt that rather than reducing CST step by step, the govt should abolish it in the coming Budget and should not allow FDI in the retailing of multibrands. |
| "They should provide subsidies to us so that we can go for brand promotions in a proper way," Jain said. |
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