Tirupur knitwear cluster sees the Union Budget as “propeller of growth” and has welcomed the Service Tax exemption for Common Effluent Treatment Plants (CETPs).
According to A. Sakthivel, president of Tirupur Exporters Association, individual and common effluent treatment plants should be included under the Technology Upgradation Fund Scheme (TUFS) to give a boost to modernisation in effluent treatment. The interest subsidy and capital subsidy for the processing machinery should be increased, he added. Overall it is a budget that could propel growth in manufacturing clusters such as Tirupur and benefit individual tax payers too, if the budgetary proposals get implemented in full without making any further changes, said the representatives of the industry here. The proposal to reduce the Corporate Tax from 30 per cent to 25 per cent over a period of four years will help the industrialists to reserve a substantial portion of their earnings for business expansion, said Raja Shanmugam, an apparel exporter and state council member of Confederation of Indian Industry.
D. Prabhu, secretary of Texpreneurs Forum, said that one of the ultra mega power projects proposed in the budget should be given to Tamil Nadu considering the power needs in the State.
According to S. Dhananjayan, member of the Institute of Chartered Accountants of India, allocation of Rs.1,000 crore to set up incubation centres to develop new technologies as well as to support start-up ventures will motivate entrepreneurship in towns such as Tirupur.
The move for a separate 7.5 per cent sub limit for MSMEs under priority sector lending was seen by the predominant micro, small and medium enterprises in Tirupur knitwear cluster with a hope of getting at least a certain ceiling of assured credit from banks.
