Stimulus package for textiles to have minimal impact in Guj
Stimulus package for the textile sector announced by Union government will have minimal impact on the sector in Gujarat.
By PTI |
AHMEDABAD: Stimulus package for the textile sector announced by Union government will have minimal impact on the sector in Gujarat, those associated with industry said on Monday.
Government yesterday allocated an additional 1,400 crore to clear entire backlog in Technology upgradation Scheme (TUFS) as a part of Industry stimulus package. There are over 4000 small and big entrepreneurs enrolled under the scheme, in Gujarat.
"Stimulus package will have no impact on textile sectors of Gujarat when entrepreneurs are facing tough time due to global slowdown as the package only speaks of giving of loans under technology upgradation," President of City Chapter of Textile Association India, T L Patel, said.
"Entrepreneurs who took loan under TUF are unable to repay the amount due to slack international market and poor off take of exports this year," Patel said.
"No new entrepreneur is enrolling under TUF, since international demand for textile has fallen sharply. Even, the four per cent relaxation in Cenvat will have no impact on textile," Patel said.
However, the new package is expected to clear the six month old backlog of subsidy, the entrepreneurs here had been awaiting for, officials said.
"Pending subsidy for technology upgradation for last six months of over 4000 small and big textile entrepreneurs registered under TUF, will now get cleared with this additional allocation," Deputy Director SP Verma, at regional textile commissioner office told.
Government yesterday allocated an additional 1,400 crore to clear entire backlog in Technology upgradation Scheme (TUFS) as a part of Industry stimulus package. There are over 4000 small and big entrepreneurs enrolled under the scheme, in Gujarat.
"Stimulus package will have no impact on textile sectors of Gujarat when entrepreneurs are facing tough time due to global slowdown as the package only speaks of giving of loans under technology upgradation," President of City Chapter of Textile Association India, T L Patel, said.
"Entrepreneurs who took loan under TUF are unable to repay the amount due to slack international market and poor off take of exports this year," Patel said.
"No new entrepreneur is enrolling under TUF, since international demand for textile has fallen sharply. Even, the four per cent relaxation in Cenvat will have no impact on textile," Patel said.
However, the new package is expected to clear the six month old backlog of subsidy, the entrepreneurs here had been awaiting for, officials said.
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"Pending subsidy for technology upgradation for last six months of over 4000 small and big textile entrepreneurs registered under TUF, will now get cleared with this additional allocation," Deputy Director SP Verma, at regional textile commissioner office told.
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