CIIs committee, representing all major textile companies, has suggested slew of fiscal measures to be introduced in the next Budget 2003-04 to further strengthen the sector.
The companies attended the meeting of textiles committee included Indo Rama, Bombay Dyeing, Grasim, Madura Coats, Shamken and Vardhman.
Suggesting the government to further strengthen the textile sector in the forthcoming Budget, CII said: Government had imposed SAD on imports in lieu of ST with a commitment to the industry that it would be withdrawn by March 2000, but the government is still continuing with it. It must be withdrawn in the coming Budget.
In order to boost spinning sector concessional rate of duty should be extended to compact yarn spinning machinery. Some of the textile machinery are subjected to concessional rate of five per cent customs duty which are not produced indigenous. As Compact yarn spinning machinery is not indigenously manufactured, it should also be covered under the scheme, CII spokesperson said.
Urging government to increase the period of interest free warehousing from one month to at least three months, he said: The reduction of warehousing period from six months to one month is a harsh measure. At least three months period should be allowed without any interest and the interest rate should be at the most 15 per cent. In 2001, the government had restricted the interest free period of warehousing from six to one month and imposed a 24 per cent interest after the expiry of 30 days period.