MoT takes steps to solve problems faced by textile industry
05 Dec '07
3 min read
The High Level Committee on Manufacturing (HLCM) under the Chairmanship of the Prime Minister, while considering the Action Plan of the Ministry of Textiles for the growth of textile industry, inter alia, decided that the Ministry of Finance, in consultation with the Ministry of Textiles and the National Manufacturing Competitiveness Council (NMCC), would expeditiously consider the fiscal proposals required for the textiles sector.
This information was given by the Minister of State for Textiles, Shri E.V.K.S. Elangovan, in the Rajya Sabha, in a written reply to a question by Smt. Mohsina Kidwai. Consequently, the Government announced a set of measures in July, 2007 to provide relief to exporters by way of accelerated reimbursement of dues to exporters, reduction in the interest rate on pre-shipment and post-shipment credit and revision in drawback rates and Duty Entitlement Pass Book (DEPB) rates.
In addition, the Government has also notified exemption of certain service tax in respect of exporters, the Minister added.
The Minister further informed that a meeting was recently taken by the NMCC with the officials of Ministry of Finance, Ministry of Commerce & Industry and Ministry of Textiles, where representatives from Textiles industry associations were also present, on issues relating to restoring competitiveness in the Textiles & Garment Sector. Finance Minister also took a meeting with the Textile industry along with the officials of the Ministry of Textiles, the NMCC and the Ministry of Finance.
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