According to a Textile Ministry official, the Government is considering a proposal to forgo the 16 percent countervailing duty (CVD) on import of technical textile machinery used to manufacture specialized items like optical and glass stable fibres.
The official added that current CVD raises cost of machinery and is a roadblock in the setting up of textile institutes in the country.
Apart from this, the official has also drawn attention to the fact that specialized fibres and yarn such as aramide, chronic fibres, optical fibres, and glass staple fibre were not produced in the country. Therefore, the Finance Ministry must permit import of these fibres at a concessional customs duty of 5 per cent and also exempt them from CVD.
Commenting on the technical textile chapter in India, the official said this industry, which offers many opportunities for joint venture and FDIs, is estimated to attract investment of Rs 43,700 crore by 2010.
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