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Textile body seeks tax incentives

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Chandan Kishore Kant Mumbai
Last Updated : Feb 14 2013 | 7:42 PM IST
Confederation of Indian Textile Industry (CITI) has submitted certain fiscal measures to the Centre to assist the industry's growth for the next five years.
 
"We have asked for excise duty cuts on man-made fibre products and machinery. With the industry set to attract more than Rs 1,00,000 crore investment by 2010 such measures are necessary," said Shekhar Agarwal, chairman, CITI.
 
At present, the excise duty on man-made fibre products is 8 per cent which the confederation wanted to reduce to 4 per cent. According to the confederation, country's textile machinery industry is not in a position to keep pace with the growing requirements of the $ 40 billion industry.
 
"We have asked the Centre to slash the excise duty on machinery to 8 per cent from the existing 16 per cent," added Agarwal.
 
The textile body has also asked for the continuation of the technology upgradation fund scheme (TUFS) in the eleventh Five Year Plan. Under the TUFS, cost of projects sanctioned is to the tune of Rs 42,065 crore.
 
Out of it, Rs 18,635 crore have already been sanctioned as loans. The schemed provides subsidy benefit of 5 per cent on interest. High power rates have always been the main concern of the Indian textile industry.
 
Despite making a hue and cry over the issue, no concrete measures have so far been taken.
 
To reduce the cost disparity of power between India and other countries, the textile body has asked for removal of excise duty and customs duty for captive power generation. "At present, it is 16 per cent. We want it to be cut to 8 per cent," said Agarwal.

 
 

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