All textile, rubber items dereserved

New Delhi, March 29 | Updated: Mar 30 2005, 05:30am hrs
The government has thrown open the rubber and the textiles sector, including hosiery, for large and medium-scale manufacturing. The Budget for 2005-06 had said that 108 items exclusively open for the small scale sector would be dereserved.

The 108 items to be dereserved include all the 20 rubber products, 21 textiles , including hosiery products, 27 electrical machinery and appliances, and 13 mechanical engineering products , excluding transport equipment.

Senior officials told FE that the list would be published in the government of Indias gazette during the week. With this round of dereservation, the number of items now exclusively reserved for the small sector stand pruned at 497 from 605, they said.

The government has dereserved 16 items under textile products, including hosiery, and another four items under art silk or man-made fibre hosiery. The 20 rubber products dereserved include tyres and tubes for cycles and rickshaws, rubber hosepipes, and rubber blowing agents.

The 27 items dereserved under electrical machines and appliances include transformers, miniature vacuum bulbs, hot plates, transmission hardware etc.

The 13 mechanical engineering items include hand pumps, hand showels and other agricultural implements.

All items under electrical equipment but amplifiers for entertainment and public address system have also been dereserved.

The government has, however, retained much of the 40 auto components and ancillary items for the small scale. The four items dereserved include valve lifters, valve replacing and resetting tools, camber testing equipment and sun visors-auto.

Studies have shown that big companies have not quite forayed into sectors dereserved in the past. In fact, the small units have become far more competitive, a senior official said.