One of the problem areas for the textile units is that under the technology upgradation fund (TUF) scheme, captive power generation has been included under `other investments eligible' category. What has upset the industry is the fact that under the category, loans are calculated only on the amount of fresh investments made.

The industry wants that captive power generation should be placed under the `machinery' category so that the percentage of loan amount could be calculated on the total plant investment. In the representation made to the textile commissioner, NITMA has pointed out that investment in captive power generation would be viable only if the desired changes in the category is made.

In a second letter addressed to thetextile commissioner, the association has also asked for a reduction in import duty of polyester staple fibre (PSF) as the recent increase in prices of domestic PSF has started ``eroding viability of textile mills.''

In the representation NITMA president, HB Chaturvedi, has pointed out that domestic producers of PSF have been increasing their prices every three weeks. Prices have increased by 20 per cent in the last three months from Rs 40.50 per kg to Rs 52 per kg.

The association said that because of intense global competition, textile mills were not able to pass on the burden to the consumers and therefore their existence was under threat. A reduction in import duty from 35 per cent to 15 per cent would help in solving the problem, the association believes.

NITMA has also sought permission for textile units importing machinery under the EPCG scheme to export yarn without restrictions on use of local cotton. The 100 per cent EOUs have already been given such a permission by the textile ministry.

Ina letter to textile secretary Shyamal Ghosh, the association has asked for the concession to be made permanent for both the 100 per cent EOUs and the EPCG units instead of pegging it to December 31, 1999 as had been earlier done in the case of the EOUs.

With devaluation of currencies of south-east Asian countries and the resulting intense global competition, NITMA believes that the above changes are vital for survival of Indian textile units in the international market.