Customs duty waiver on looms to boost textile ind: Texprocil.

Mumbai, Mar 18 (PTI) Export promotion body Texprocil has said that exemption to automatic shuttleless looms from customs duty will give a boost to modernisation of textile industry. "The exemption of customs duty on automatic shuttleless looms will certainly give a boost to the modernisation efforts of the textile industry in the weaving sector and will help India emerge as a vibrant hub for fabric production in south Asia," Texprocil Chairman Amit Ruparelia said. The Budget has exempted automatic shuttleless loom from basic customs duty of 5 per cent and has allocated Rs 2,914 crore under the technology ungradation fund scheme. Besides, the Budget has also proposed to set up a powerloom mega cluster at Ichalkaranji in Maharashtra with an allocation of Rs 70 crore and two more mega clusters in Andhra Pradesh and Jharkhand. "The setting up of a powerloom mega cluster in Ichalkaranji and two more handloom clusters in Andhra Pradesh and Jharkhand each and the announcement of Rs 500 crore pilot project for the promotion and application of geo textiles in the north-eastern region are all positive steps for the industry," he said. The body has, however, raised concerns over the increase in excise duty and service tax saying it will increase the cost for exporters. Finance minister Pranab Mukherjee has proposed to increase the excise duty on cotton textiles from 4 per cent to 6 per cent and service tax from 10 per cent to 12 per cent. "This will increase cost for exporters. We request the government to suitably increase the duty drawback rates to reflect the higher incidence of excise duty and service tax so that exports of textiles remain competitive," Ruparelia said.

Source : ibnlive.in.com