Faced with stiff competitions in the global market, around 300 textile units in the region have made separate representations to Prime Minister Narendra Modi listing out the immediate steps they expect from the government to help them remain competitive.
Textile entrepreneurs wanted the intervention of the Union Government to ensure speedy disbursal of subsidies under the Technology Upgradation Fund (TUFS).
Projects started during the ‘blackout period’ set for TUFS – June 29, 2010, and April 27,2011 – too should be considered for payment of subsidies.
“Though the Textile Commisisonerate in Mumbai has released the Expression of Interest from audit firms to clear the pending claims under TUFS, nothing has happened thereafter,” said Prabhu Damodaran, secretary of Indian Texpreneurs Federation, an umbrella organisation of the 300 units.
The entrepreneurs wanted removal of the hank yarn obligation, which according to them, was a major deterrent for growth and economic viability of textile mills in the region. This age-old stipulation mandates the units to produce a minimum 40 per cent of the yarn as hank yarn. Due to this, there is an excess production of hank yarn as the consumption of the same has come down because of the growth of power loom sector. And hence, the rule should be scrapped, they said.
