Govt to do away with textile panel cess

The Centre would do away with the 0.25 per cent textile committee cess because the committee had become self-sufficient, said the Textile Secretary R Poornalingam.

"The abolition of the cess should be through an amendment to the Textile Committee Act, which will be immediately put before the Cabinet for approval," he added.

Poornalingam said the the Technology Upgradation Fund Scheme (TUFS) would not be extended beyond 2007, despite demands by various industry associations. He said the demand for incorporating flexible labour laws with provisions for contract labour was being examined by the ministry.

He expressed hope that the newly launched Scheme for Integrated Textile Parks (SITP) would be a success, stating that 26 associations and individuals had come forward to set up integrated parks across the country.

The government had launched the scheme last month appointing infrastructure leasing and financial service (IL&FS) as the nodal agency which would assist in establishing such parks.

About the demand from the garment sector for increasing duty draw back rates, Poornalingam said the ministry had put in a cushion by which an individual or company could avail flexible drawback by providing specific data.