SGCCI ignores small industries, say weavers

The Federation of Gujarat Weavers' Associations on Saturday accused the Southern Gujarat Chamber of Commerce and Industry (SGCCI) of harming the interests of small industries.

However, the chamber refuted the allegation.

President of the federation Manu Patel said, "The chamber is a body of local industries, but it has always raised issues related to bigger industries with the state and the central governments. The chamber has always meted out a step-motherly treatment to smaller industries and the powerloom industry."

Patel said, "The powerloom industry is facing several problems due to overproduction. In view of this, we had suggested production cut a few weeks back. The chamber opposed the decision saying production cut was not a permanent remedy. But the chamber representatives have now taken a U-turn and are advocating the need of production cut."

"When Cenvat (central value added tax) was imposed on the weaving industry, the chamber had welcomed the move saying it would be beneficial for the industry. Weavers are facing several problems due to Cenvat and it is only now that the chamber's representatives have started demanding its abolition," Patel said.

"A meeting was organised at the chamber a few days back to discuss various problems local industries are facing. Surprisingly, we were not invited to the meet," Patel said.

"The Union budget will be presented shortly. It is important to raise burning issues of powerloom industry, such as Cenvat and power tariff, with the government. We will not tolerate any attempt by the chamber to reach any sort of compromise or agreement with the government if weavers are not taken into confidence," Patel said.

Chamber president Dinesh Mandalaywala, however, refuted the allegations.

When contacted, Mandalaywala said, "The allegations of Manu Patel are untrue and baseless. I do not know on what basis he has made this statement. The chamber has always worked for the benefit of local industries and will continue doing so in the future. We have never discriminated against small industries. We have raised issues related to all industries at the highest level."

Manu Patel welcomed the state government's decision to provide 3 per cent interest subsidy on the Technology Upgradation Fund (TUF).

"It is a welcome decision. It will benefit local industries. But I feel it will mostly benefit the bigger industries. The state government should announce more incentives or similar schemes for smaller industries," Patel said.

Weavers and textile traders in Surat have been facing several problems. Firms which vanish after duping them of crores of rupees have resulted in heavy losses to the industry.