Special fund seen for textile sector

The government is likely to set up a special fund for the textile industry before the dismantling of the quota regime, Union minister for textile Sankarsinh Vaghela said on a three-day visit to the city on Friday. The quota regime will be dismantled from January 1, 2005.

"A proposal in this regard will be forwarded to the finance minister, P Chidambaram ahead of the Budget," the minister said. He added that the textile ministry is looking at various proposals to be presented to the finance minister to reduce the burden on the textile sector.

"We already had one meeting with the finance minister and the second round is due shortly," he said.

During this meeting Vaghela will present all the recommendations for the forthcoming Budget to provide a level playing field for all the segments of the industry.

On the issue of implementing Cenvat, Vaghela said that there was a divided opinion among the industry and that he has received various representations for the removal and continuation of excise duty on the powerloom industry.

"Our decision will be taken after due consideration and the same would be conveyed to the finance minister in a memorandum," he said.

The minister said that the government will extend support to promote the exports. "Our aim is to double the exports from the current level of Rs 50,000 crore to Rs 100,000 crore," he said.

Vaghela also said that the government is looking a proposal to redevelop the land owned by the National Textile Corporation.

The proposal is to develop an international trade centre, retail outlets and a mall so that further employment can be generated in the sector.

"Proposals for five such mill land has already been forwarded to the Maharashtra state government," Vaghela added.