Weavers plan to seek Cenvat abolition

Weavers will submit a representation to Union textiles minister Shankarsinh Vaghela seeking abolition of Cenvat (central value added tax) and extension of Technology Upgradation Fund benefits to small-scale weavers, when the minister visits Surat on July 3.

This will be Vaghela's first visit to Surat after taking over as Union minister.

A meeting of the steering committee of the Federation of Gujarat Weavers' Associations was held on Monday to decide the agenda of the representation to be made to Vaghela.

The federation president Manu Patel, said, "Cenvat will be the main issue in our representation. Cenvat has not proved beneficial to anyone, neither to the government nor to the weavers. We will urge Vaghela to take steps for abolition of Cenvat at the earliest."

"If the government cannot abolish Cenvat, we will ask the textiles minister to take certain relief measures," Patel said.

Extending benefits of Technology Upgradation Fund to smaller weavers would also figure in the representation.

"The state government has recently announced 3 per cent interest subsidy on the fund for industries. We, however, feel that this move will benefit only bigger industries, which would give them an undue advantage over the smaller industries. We will urge Vaghela to take steps so that even the smaller weavers, who have 12, 24 or 36 looms, are provided benefits under this scheme," said Patel.

The weavers' federation would also hold talks with other associations of the textile industry.

"We feel that our representation will be much more effective if various trade associations join hands and place demands together before the government. We will talk to other associations related to the textile industry to chalk out a common agenda for the representation to be made to Vaghela," said Patel.

The meeting also decided against joining the bandh called by weavers of Bhiwandi.

"The powerloom industry of Bhiwandi has called for a bandh seeking abolition of Cenvat on July 5. We have, however, decided not to join the bandh," said Patel.

Abolition of Cenvat has been a prominent demand raised by weavers in the state. They had also raised the problem of vanishing firms which dupe them of crores of rupees.