Policy measures needed to revive textile sector: Rana

VADODARA: Union Textile Minister Kashiram Rana on Sunday said he will ask the Finance Ministry for policy measures, including fiscal concessions and subsidies, to infuse new life into the ailing textile sector.
“The Centre should provide requisite support to the textile sector in the form of duty reduction, particularly excise duty and make the industry efficient in terms of cost of production and price,� Rana told PTI here.
With neighbouring countries like China, Pakistan and Bangladesh providing such concessions to the industry, it is time that India take steps in this regard, the minister said.
He said the NK Singh Committee''s suggestion on application of an eight per cent Cenvat for the textile sector starting at the yarn stage for a period of three years to enable modernisation is ideal and did not agree with Kelkar Committee''s suggestion of 16 per cent Cenvat for cotton.
After dismantling of Multi-Fibre Arrangement (MFA) and clothing becoming free from quotas till 2005, the domestic industry will have to face import competition. So the synthetic filament yarn industry has demanded reduction of excise duty from 32 per cent to 20 per cent in a phased manner, Rana said.
Kelkar Committee'' suggestion of bringing all components of textile industry under one umbrella by extending the unbroken Cenvat chain to the entire industry, is not a practical proposition, he observed.
The textile minister was confident of achieving export target of $15 billion for the fiscal year.