Reiterating the need for mega industrial parks, Telengana industries and textiles minister KT Rama Rao, in a recent letter to union textiles minister Smriti Irani, urged the central government to promote textile and apparel sectors in the country and offer incentives to textile companies to overcome the hurdles arising out of the COVID-19 crisis.
As the pandemic has severely affected the Indian handloom, textiles and apparel industry, several companies are facing zero revenues and are unlikely to see cash flows for the next four to six months in the best-case scenario, he wrote.Reiterating the need for mega industrial parks, Telengana industries and textiles minister KT Rama Rao, in a recent letter to union textiles minister Smriti Irani, urged the central government to promote textile and apparel sectors in the country and offer incentives to textile companies to overcome the hurdles arising out of the COVID-19 crisis.#
He requested the central government to protect livelihoods, raise exports and exploit emerging opportunities for creating new jobs. He made several suggestions as part of his immediate and medium-term action plan for long sustenance of the textile industry, according to media reports from the state.
His suggestions included wage support of up to 50 per cent for a period of up to six months in the form of a long-term loan, which the company need to repay in instalments after a stipulated period.
To support the handloom sector, he suggested a series of measures to enable wider market for the piled-up handloom fabric and finished products on national and international e-commerce platforms. He proposed that the governments can support the initiatives through institutional buying by government-owned corporations like Khadi and Village Industries Commission (KVIC), and Cottage Industries Emporium among others.
As part of medium-term action plan, he suggested an inverted duty structure under the goods and services tax on man-made fibres to support the increasing investment in segments like synthetic materials.
He wanted the government to transfer subsidies directly to cotton farmers’ bank accounts rather than offering a minimum support price for their produce.
Expediting the Mega Textile Park Policy, which is presently under consideration at the ministry of textiles, will go a long way in supporting industrial infrastructure creation at a rapid pace, he added.
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