MUMBAI: The Cotton Textile Export Promotion Council (Texprocil) has welcomed the Union Budget 2007-08 for continuation of Technology Upgradation Fund (TUF) scheme during the Eleventh Plan; the Texprocil Chairman, Mr Prem Malik told BT News here on March 2.
Mr Prem Malik has appreciated the government for understanding the prime role of TUFS in the much needed modernization and scaling-up of manufacturing facilities in the textile sector.
He pointed out that the single most important factor inhibiting technology upgradation has been the high cost of capital.
According to him, the enhanced outlay of Rs. 911 Cr under the scheme (from Rs.535 crore in 2006-07) will not be adequate to meet with investment requirements to spur the efforts at modernization.
He hoped that the outlay will be increased to at least Rs 1500 Cr for the year in order to build world class, state-of-the-art, production capacities and enable India to become a global player in world trade.
He was also confident that the proposal to increase the provision for textile parks under Scheme for Integrated Textiles Parks (SITP) from Rs.189 crore in 2006-07 to Rs.425 crore in 2007-08 will strengthen the manufacturing base in the Textile sector.
He also welcomed the reduction in the peak rate of custom duty for non-agricultural products from 12.5 per cent to 10 per cent.
He was optimistic that the reduction in customs duty on polyester fibres and yarns from 10 per cent to 7.5 per cent will provide the much needed fillip to the exports of blended textile products where currently India has a negligible presence in the world markets.
Mr.Malik was however disappointed that some issues like reduction in import duty on Textile Machinery, reduction in Excise Duty on Textile Machinery to 8% from the present level of 16%, reduction in mandatory excise duty on MMF fibre, reduction in transaction costs did not find any mention in the Finance Ministerís Budget Speech.
He hoped that these issues will be considered favourably by the Government before passing the Finance Bill.