The Hindu Business Line : Textile industry woes flow into engineering sector

Coimbatore, Dec. 29Textile engineering industry (TEI) is sceptical about the domestic textile sector attracting the projected huge investment for the Eleventh Plan period in the face of the current difficulties being experienced by the latter.

While orders booked earlier were not being lifted, fresh orders are not forthcoming to the TEI because textile units across the value chain are getting closed or scaling down operations across the country due to losses suffered both in the domestic and export market, the textile machinery manufacturers association India (TMMA) has said, adding that the TEI had started experiencing the difficulties.

Export realisation

On the export front, the exports of machinery by the TEI is likely to fall below Rs 400 crore during the current fiscal from the estimated Rs 500 crore clocked during 2006-07, the rupee appreciation being the culprit which, according to TMMA, had already reduced the export realisation to a considerable extent.

Calling upon the Government to initiate measures to uplift the textile industry and improve its cost competitiveness, lest it spell doom for the TEI, the TMMA has also urged the Centre to lower the excise duty from 16 per cent to 8 per centconsider uniform rate of excise duty for complete machinery as well as raw material, parts/components and accessories.

Customs duty

It has also asked that the floor level customs duty be maintained at 7.5 per cent and levy uniform rate of customs duty on raw material, parts/components, and accessories.

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