The Hindu : Tamil Nadu / Chennai News : Stimulus package will help to improve liquidity, says CII

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Monday, Dec 08, 2008
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Tamil Nadu - Chennai

Stimulus package will help to improve liquidity, says CII

Special Correspondent

CHENNAI: The Confederation of Indian Industry (CII) has said the stimulus package announced by the Centre will help to improve the liquidity in the textile sector and bring down the prices across all sectors.

CII Tamil Nadu State Council chairman Manikam Ramaswami said: “This time around, everyone has been benefited by the across-the-board tax cuts, be it FMCG, auto or textiles.” Mr. Ramaswami said the import duty on naptha for power generation was removed because of the power shortage. The import duty on furnace oil should also have been removed.

He said that to ensure liquidity in the textile industry, the Centre cleared the one-year backlog pertaining to the Technology Upgradation Fund Scheme as well as the terminal excise duty. “It is, indeed, a good move. It will benefit exporters because of the two per cent interest subvention.”

M. Balasubramanian, president of the Southern India Chamber of Commerce and Industry, said the package came at the right time to stimulate the economy.

He described the cut of four per cent CENVAT duty and two per cent incentive on labour intensive units such as textile mills and leather units were a step in the right direction.

Welcoming the package, Federation of Indian Chambers of Commerce and Industry (FICCI) Tamil Nadu State Council chairman M. Rafeeque Ahmed said he was disappointed, as it offered very little for exporters. “The refund of output service taxes and export commission of up to 10 per cent will help every one, but it will not stimulate the economy,” he said.

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