Textile industry wants a lot more

NEW DELHI. While textile units expected special attention from the FM initiatives announced in the Budget are seen by the industry as ‘inadequate’ to tide over the crisis faced on account of rupee appreciation. Industry leaders termed the Budget as “unfortunate” for the economy in general and exports in particular.

“The idea of inclusive growth will remain only on paper unless concrete measures are taken to encourage industries like textiles and clothing, which have the potential to deliver inclusive growth,” Confederation of Indian Textile Industry (CITI) chairman PD Patodia said. The Budget has provided relief to makers of man-made fabrics by scrapping the 1% national calamity contingency duty (NCCD). The finance minister has proposed increase in allocation for the two existing flagship programmes of the textile ministry. The scheme for integrated textile parks (SITP) would get Rs 450 crore in 2008-09 while the technology upgradation fund (TUF) would get Rs 1,090 crore.

The FM has also proposed an outlay of Rs 420 crore for the development of six textile mega clusters in Varanasi, Sibsagar, Bhiwandi, Erode, Narsapur and Moradabad. Initially, the Centre would allocate Rs 100 crore for this scheme in the current fiscal.

Industry associations termed the allocations insufficient. “Allocation (under TUFS) is insufficient as delay in disbursement has been a serious problem and there is a huge backlog,” Southern India Mills’ Association (SIMA) chairman KV Srinivasan said. Chairman of Tirupur Exporters’ Association (TEA) A Sakthivel said that the industry is disappointed over the silence on issues of labour reforms and refunding of hedging cost borne by exporters.