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Govt rolls out major plans to boost textile sector

04 Aug '05
3 min read

In an attempt to boost to the textile industry the centre has initiated some measures, while a few existing schemes have been restructured to face new challenges in the post-quota regime. The steps take by the Government are outlined below:

(i) Cotton development and research programmes like Integrated Cotton Development Programme (ICDP) have been launched.

(ii) Bacillus Thuringiensis (BT) cotton has been released commercially w.e.f. 2002-03 cotton season by government of India to fight pest resistance being faced by cotton farmers in major qualities of the crop.

(iii) Promoting integrated cotton cultivation (contract farming) involving availability of seeds, pesticides, fertilizers etc. to the farmers for obtaining desired quality of cotton.

(iv) Setting up of a Cotton Technology Mission with an outlay of Rs. 593 crores to improve the quality of cotton fibre at reasonable cost with a view also to export cotton at competitive prices in comparison to other exporting countries.

(v) Technology Upgradation Fund Scheme (TUFS) has facilitated modernization and upgradation of textile sector.

(vi) The import of a large number of capital goods of man made fibres/yarns industry has been allowed under concessional customs duty of 5 per cent. Besides, the cost of machinery has also been reduced through fiscal policy measures. Except for mandatory excise duty on man made filament yarns and man made staple fibres, the whole value addition chain has been given an excise exemption option.

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