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Textiles
not benefitted from special financial package: SIMA
PTI
- Coimbatore
The Southern India Mills Association (SIMA) has suggested that the
minimum stipulation of Rs 100 crore for availing the special financial
package announced by the RBI must be relaxed in the case of textiles.
In a memorandum submitted to textile commissioner, Mr Subodh Kumar,
SIMA said though ‘textiles’ had been identified as one
of the products under the special package for large value exports
of select products, only manufacturing units with export contracts
of Rs 100 crore and above in value terms in one year were eligible.
When the package was announced the ground realities were different,
as the developed economies had now slashed
the interest rates to a little over two per cent, it said.
Moreover, the interest rates in India, though moving downwards,
were still very much higher than the international rates, SIMA pointed
out. Being the single largest foreign exchange earner and in the
midst of a severe crisis owing to global recession, the textile
sector should have the relaxation in minimum stipulated of Rs 100
crore, the memorandum suggested.
Urging a level playing field, SIMA said the exemptions and concessions
offered to various sectors within textiles had led to fragmentation
of the textile industry.
With dismantling of quotas, the global competition was expected
to hot up from 2004 and the fragmentation could only hurt the country’s
prospects, it said.
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