The Hindu Business Line : `A progressive Budget'

ACCORDING to Mr Pradeep Bhandari, Deputy Group President and Whole-time Director, Raymond Ltd, The de-reservation of more products will encourage the creation of large and world-class facilities."The one disappointment of the Budget was that the Government did not liberalise labour laws for the textile and apparel segment," Mr Bhandari said. The 10 per cent capital subsidy for the processing segment, he said, would help the sector improve existing facilities and create value-added products.

Mr B.K. Goenka, Vice-Chairman and Managing Director, Welspun India Ltd, said that the reduced customs duty on textile machinery to 10 per cent (20 per cent) would help companies upgrade and reap the benefits of the post-quota era. The weaving sector was considered the weakest link and would hence benefit from the 10 per cent capital subsidy scheme.

Our Ahmedabad Bureau adds: Mr Sanjay Lalbhai, Managing Director, The Arvind Mills Ltd, said, "A progressive Budget, it recognises the growth potential offered by the Indian textiles industry after the dismantling of the Multi-Fibre Agreement. Launch of the manufacturing competitiveness programme will help small and medium enterprises and Technology Upgradation Fund is a positive step. Reduction in import duties on textile machinery and 10 per cent capital subsidy for new investment in processing would encourage fresh investment in the sector. However, the present labour laws will continue to be a constraint in mobilising investment at the desired pace.

Our New Delhi Bureau adds: The duty rationalisation measures announced by the Finance Minister for the textiles sector has come in for some flak from sections of the industry.

The Indian Cotton Mills Federation (ICMF) has said that the process of fiscal correction initiated by the Finance Minister in his last Budget has been left incomplete in the current Budget.

"The mandatory excise duty on man-made fibres continues at 16 per cent whereas the industry had requested this to be reduced to 8 per cent at par with the duty applicable to man-made fibre yarn. This will continue the problem of unutilised Cenvat credit getting accumulated with spinners," the Chairman of ICMF, Mr V.K. Ladia, said.

He said the industry demand for a reduction of import duty on man-made fibres from 20 per cent to 10 per cent, at par with natural fibres, has also not been carried out.

ICMF said the upfront capital subsidy of 10 per cent for processing machines, as well as the de-reservation of 30 textile and hosiery items from SSI sector, were positive steps. Our Coimbatore Bureau adds: Mr P.V. Chandran Managing Director, Ambika Cotton, said the continuation of the Cenvat duty for textiles and lowering of Customs duty on textile machinery announced in the Budget will pep investment drive and it is overall a good budget for the industry.

Our Chennai Bureau adds: Mr A. Sakthivel, Chairman, Apparel Export Promotion Council, said that this was the first Budget that has prescribed ways to generate employment and investment, coinciding with the final phase-out of the garment quotas.

The Factories Act should be modified to allow 12 hours of work and women employees permitted to work from 6 a.m. to 10 p.m.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page