Textiles analysts want TUF scheme to be extended

Textile analysts want the budget to extend the TUF scheme, according to which companies get a 5% rebate on the amount borrowed. They further expect duty rationalization on the input of raw materials on man made fibres.

SP Tulsian wants an extension of TUF scheme beyond March 31, 2007. Under the Technology Upgradation Funding Scheme,TUF, companies get 5% rebate on the amount borrowed.

More SEZ for textiles should be promoted.

There should be duty rationalization on the input of raw material on man made fibres.

The textile industry expects excise duty on manmade fibre products to be reduced to 4%.

Furnace oil has become extremely costly, following increase in petroleum prices and this is an important input for textile industry. Therefore the industry wants the excise duty of 16% on furnace oil to be waived.

Federation of Indian Chambers of Commerce and Industry, FICCI also gives its wishlist from the budget for the textile sector:-

• To remove distortionary exemptions from the CENVAT chain to reach a fibre fiscal regime
• Cotton fibres should be brought into excise purview at 4% at the mill consumption stage

 

By-Piyu Sen