Textile exporters sore on change of Govt policy

Mumbai, Jul 12: A series of measures taken by the government for the textile sector in recent past has irked the textile exporting community.

Addressing a news conference here today, Synthetic and Rayon Textiles Export Promotion Council (SRTEPC) chairman R L Toshniwal said, ''If appropriate corrective measures were not taken by the government on an urgent basis, the textile exports may witness an immediate decline.'' Some of the measures that have been taken by the government within past 15 days include drastic reduction in the rates of duty entitlement pass book (DEPB), sudden suspension of approvals under the technology upgradation fund scheme (TUFS) and above all, the reduction in benefits under the target plus scheme.

While DEPB rates for man-made fibre and cotton textile items have been reduced substantially last week, all the fresh approvals under the TUFS has been suspended by the government since July 6, he said.

Similarly, the benefit under the target plus scheme has been restricted to a flat rate of five per cent irrespective of the quantum of incremental growth achieved during 2005-06 over the preceding licensing year, Mr Toshniwal said and urged the government to restore the facilities available to the exporters under export assistance schemes with immediate effect.

Cotton Textiles Export Promotion Council (Texprocil) deputy chairman Prem Malik who was also present on the occasion, said that ''The decision had been taken at a time when the textile units had planned large investments for modernising and upgrading their units to expand the production capacities and also to improve the qualities to meet the demand in domestic market as well as international markets for textiles and clothing''.

Considering the need for technology upgradation of the textile units, the industry has requested the government for further extending the scheme up to 2010 and thus increasing the funds, he pointed out.

UNI