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FIASWI urges government to expedite powerloom modernisation process

E-Tex Staff - Mumbai

The Federation of Indian Art Silk Weaving Industry (FIASWI) has asked the government to announce the proposed special relief package for powerlooms at the earliest in order to hasten the entire process of modernise.

“The proposed capital subsidy of 20 per cent to modernise powerloom sector and also the Powerloom Workshed Scheme under the Textile Cluster Implementation Development Scheme should be implemented without any further delay,” stated Mr A N Jariwala, chairman, FIASWI while delivering his speech at the 25th annual general meeting of the federation recently.

Mr Jariwala cautioned that the Cenvat in the powerloom sector may lead to polarisation of smaller units. Besides, those units who are not really interested in the business of manufacturing fabrics and wants to make some money, are likely to be eliminated. Since the value addition on grey weaving is low, Cenvat will also be low which may take a longer period for utilising the same for modernising by installing new machineries and hence the modernisation could be slow in the powerloom sector, he added.

The FIASWI chairman has also called for rationalising the tariff structure on technical textiles to encourage its base in the country. “While the excise duty on apparel fabric has been reduced to 10 per cent, the excise duty on technical fabric is 16 per cent. If we have to encourage development of technical textiles, the excise tariff should at least be equal to other fabrics, if not low. I would appeal that the total excise duty on technical fabric should be reduced to 10 per cent only,” said Mr Jariwala.

According to the federation, the raw materials of technical textiles i.e. manmade fibres and filament yarn which are not manufactured in the country, should be allowed to be imported duty free or say a maximum duty of 5 per cent be levied as there is no question of any protection to the indigenous industry.

There is already a market for the technical textiles and it is growing very fast and hence what is required is a concerted effort by the government as well as the industry for the speedy development of technical textiles.

The increasing disposable income, growing health consciousness, rising cost of natural fibres and cost effective production of synthetic fibre and lighter weight, higher strength and adaptability of non-woven fabrics will all lead to market growth for technical textiles.

The federation has also urged for reviewing the Textiles Committee Cess Act in the changed market condition. “Large number of processing units received demand notices for payment of the Textiles Cess in the year 1999 even though the Textiles Committee Cess Act came into force in 1975 and there was no demand for the cess since then.

This matter needs to be resolved. Whatever funds are required by the Textiles Committee, the same should be segregated from the excise duty collected or the Textiles Cess should be collected at the spinning stage of yarn only and not at subsequent stages,” stated the chairman.

High cost of power is one of the major causes for concern. If the textile industry is to be modernised, power supply should be adequate and without interruption.

Towards this end, captive power consumption units should be allowed to be installed. Small weaving units in group or consortium of powerlooms in clusters, if permitted to install power plants and are given all those concessions and benefits which are given to captive power plants will help the industry in solving power shortage. For this purpose, states will have to be pursued to make suitable changes in their captive power generation policy, according to the federation.