A majority of power looms in the Tirupur-Avinashi-Somanur-Palladam belt in Tamil Nadu have stopped production since March 12, 2003 as a sign of protest against the 10 per cent Central value-added tax (Cenvat) imposed in the recent union budget.
The powerloom industry, according to M Dwivedi, the commissioner of customs and central excise, Coimbatore and Salem, is the only segment in the full chain of yarn to apparel manufacture, left out of the excise duty so far.
Dwivedi said,
