Financial Daily from THE HINDU group of publications
Monday, Jul 18, 2005
Financial Daily from THE HINDU group of publications Monday, Jul 18, 2005 |
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Industry & Economy
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Textiles Small powerloom units in Virudhunagar hit Our Correspondent
Madurai , July 17 SMALL-scale powerloom units engaged in the manufacture of bandage cloth at Chatrapatti near Rajapalayam in Virudhunagar district are on the verge of closure, rendering more than 10,000 weavers unemployed. With a market share of 85 per cent, Chatrapatti has been known for export of bandage cloth with the annual turnover touching between Rs 300 crore and Rs 400 crore per annum. Their survival is at stake now, with a number of units operating in the region having been already closed down. According to Mr R. Gnanaguru, a bandage cloth manufacturer in the area, the imposition of sales tax on finished products has caught the manufacturers unawares and they have been forced to pay hefty tax arrears earlier. Further, the tax regulations at present are such that they are discouraged from expanding their business, as they have to pay sales tax for the entire amount, even though there is a marginal increase in turnover above the exemption limit. Further, the inability to fix a flat rate for the finished product has been hampering the growth and competitiveness of the small units.
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