Textile units demand Cenvat exemption

Representatives of various associations in the textile industry met Union textiles minister Shankersinh Vaghela, who was on a visit to the city on Saturday.

The Federation of Gujarat Weavers' Associations demanded that the powerloom industry be exempted from the Cenvat chain with zero per cent duty or an alternate option be found out for the powerloom sector so that there is no additional financial burden on the weavers.

The federation also demanded that steps be taken to extend benefits of the Technology Upgradation Fund (TUF) to smaller weavers.

Representatives of the Ved Road Art Silk Laghu Udyog Association said the huge difference in power tariffs of Gujarat and neighbouring Maharashtra was hurting local weavers. They demanded that the central government take steps to devise a common power tariff for the powerloom industry so that Gujarat weavers are provided a level-playing field.

Representatives of various associations of manufacturers of man-made fibre fabrics also met the textiles minister. They demanded that deemed modvat be given at the processing stage for the decentralised sector. If not, weaving units with annual turnover of less than Rs one crore be exempted from central excise registration, they demanded.

These associations suggested drastic changes in the current structure of sales tax excise duty and customs duty on textiles and machinery.

The associations also suggested changes in the TUF scheme so that more industrialists could avail of its benefit. In its representation, the Federation of Surat Textile Traders' Associations demanded that the current tax structure be simplified.

The federation demanded that the central government take steps to curb vanishing textile firms. It also demanded that work on Surat airport be completed at the earliest.

The All India Co-operative Cotton Federation demanded that the central and state governments take up massive programmes to ensure supply of high quality certified cotton to cotton growers at reasonable rates.

It also demanded that acceptable varieties of Bt cotton be approved and released at the earliest by the central government. The cotton federation also sought introduction of better export incentives to cotton farmers' co-operatives by the central government.