Most powerlooms, which had gone on a nationwide strike to protest against the imposition of the Central value-added tax (Cenvat), may soon resume work.
Small powerloom operators, according to industry sources, will be given a special waiver from Cenvat.
Anti-Cenvat representatives, who have been lobbying against it for the past week in New Delhi, have managed to convince the finance ministry that small loom owners should be exempted from Cenvat.
Speaking at a press conference, M S Mathivanan, chairman of the Confederation of Indian Weaving Industry, said, "Chief ministers of the states that have over 80 per cent of the total powerlooms in the country have supported our request. In our meeting with the revenue secretary yesterday, we got a tentative consent to sparing small powerloom operators from Cenvat, though the definition of