Aepc had recommended for retention of only two categories-- past performance and first come first service (FCFS) -- he said in his keynote address to the 8th India Knit Fair, which began here.

As the new policy was almost in the final stages, the request for allowing five per cent quota for nie should also be discussed with the centre, Goyal said.

Regarding the release of special flexible quota, Goyal said that there was a certain hitch, following delay in clearance from the European Union. However, the quota release was expected by the middle or end of November, he said.

CP Radhakrishnan, BJP MP from Coimbatore, appealed to Aepc to release the quota for the industry in a flexible way. The periodical and last minute release of quota was adversely affecting the industry, he said and urged the council to evolve a dynamic policy, which could also have provision for utilising the carry over quota in the coming years.

Radhakrishnan also opposed the reported recommendations of the Satyam Committee, which formulated the new textile policy, for taking out the garment sector from small scale industries.

The knitwear industry should continue in SSI sector, he said urging the Tamil Nadu government to represent the case before the centre.

Goyal said the council had also recommended bringing down the threshold limit of Rs One crore applicable in the case of garment industry under the EPCG scheme for import of machinery at zero rate of duty.

Speaking after inaugurating the fair secretary, Tamil Nadu handlooms, handicrafts, textile and khadi department Jayanthi said the state government had initiated various steps for improving quality of handlooms products with an eye on exports.

Earlier, president of the tirupur exporters' association, A Shaktivel appealed to both the central and state governments to provide a `mother vessel berth' at Chennai, Tuticorin or Kochi, for the benefit of knitwear exporters of the town.