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Maran to take up textile sector grievances with Pranab

Special Correspondent

NEW DELHI: Union Textiles Minister Dayanidhi Maran on Tuesday hailed the proposals presented in the budget as being full of “growth-spurring initiatives” for the textile sector and assured the industry that he would take up its grievances and suggestions with Finance Minister Pranab Mukheree.

“The Finance Minister has accepted more than 90 per cent of the recommendations of the Textiles Ministry, which were based on the suggestions of the industry. If there are any anomalies or suggestions for further improvement, I will take it up with the Finance Minister. I will hold a meeting with the industry soon for this purpose,” he said at a press conference.

Asked about the disappointment expressed by the industry over the increase in the mandatory excise duty on man-made fibres, filaments and their raw materials, from 4 per cent to 8 per cent, on the grounds that it would make the fibres even more uncompetitive than they already were, Mr. Maran said he had received inputs on the issue and would take it up with Mr. Mukherjee.

“The Finance Minister can modify the proposals if needed. The government is keen to give a boost to the textile sector. We are aiming at a growth rate of 7 to 8 per cent for the sector. We will do everything possible to achieve that.”

Mr. Maran said the budget proposals should be treated as the third stimulus package and read in association with the earlier two packages. This was also not the last set of initiatives.

The government would come out with a foreign trade policy soon. This too could contain a lot of measures for the sector.

The hike in the allocation for the Technology Upgradation Fund to Rs. 3,140 crore would help clear all pending cases up to June 2009. The proposal to set up five mega clusters – two for handlooms in Tamil Nadu and West Bengal, two for carpets in Kashmir and Uttar Pradesh and one for powerloom in Rajasthan, would generate employment for 50,000 persons and attract an investment of about Rs. 1,400 crore.

The Ministry would work out the modalities for leveraging the announcements made with regard to empowerment of the weaker sections, welfare of workers in the unorganised sector and facilities for the growth of medium and small scale enterprises, so that the budget provisions could be fully utilised for the benefit of the textile sector.

“We have a huge task cut out before us to utilise the provisions of the budget for making our sector grow from strength to strength,” he said.

While there was some improvement in the U.S. market, the European market continued to be bad for textile exports.

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