CITI welcomes Gujarat's support scheme for textiles

CITI chairman Sanjay Jain thanked the Government of Gujarat for being prudent and excluding ginning and spinning sectors as there is overcapacity and focusing on value added segments where the country is weak i.e. weaving, knitting, processing and technical textiles.

“Under the last policy by the Government of Gujarat, there has been a lot of investments in the spinning sector. However, the spinning capacity in India is already in excess with 30 per cent exportable surplus and there is no requirement of any further investment incentives for this particular sector,” Jain said in a CITI press release. “Due to excess capacity in spinning segment and removal of all export incentives, the sector is facing tremendous margin pressure and a lot of NPAs are happening under spinning segment.”

With the host of incentives by the Gujarat government in the form of interest subsidy, power tariff subsidy, the new scheme will also provide assistance in a variety of areas such as technology upgradation, environmental compliance cost and for the textile parks, Jain said.

“This is a welcome step for weaving, knitting, dyeing/printing, machine carpeting, technical textiles, made-ups, composite units and other activities in the textile value chain. It will ensure balanced growth for the Indian textile industry and would further ensure that subsidies are given to the needed sector only,” he added.

Appealing to other state governments take cue from the Centre and Gujarat, Jain said, “There is a need to have a country focused approach as against the state level policies which is leading to tax payers hard earned money being used where it is not required at all and less money is getting allocated to the deficit sectors. Hence, states need to be prudent in incentivising investments by focusing on thrust areas where the states have dearth of policy support.” (RKS)

ALCHEMPro News Desk – India