The Hindu Business Line : SIMA seeks incentives from West Bengal

The Southern India Mills Association (SIMA) whose delegation had a meeting with the West Bengal Chief Minister, Mr Buddhadeb Bhattacharjee, here on Tuesday has presented a wish-list of incentives from the State Government to attract investment from textile industry that includes a concessional power charge at Rs 2.50 per unit, a cotton transport subsidy of 50 per cent and capital subsidy at 20 per cent for spinning and garmenting and 25 per cent for high tech weaving, processing and technical textiles sectors.

The association, which has enlisted over 40 demands of incentive to be incorporated in West Bengal’s new textile policy, has also pleaded for encouraging textile processing industry being the weakest link in India’s textile chain by allowing shore-based process houses to make them economically viable and also solve the water and environmental problems.

It also wanted the State to bear the entire capital expenditure for installing the common effluent treatment system as well as the marine disposal of the treated effluents by charging the industry only the recurring cost of treatment of the effluents to be pegged at Rs 10 per kilo litre.

Flexible labour law

As part of the incentive package, the association has also asked for a flexible labour legislation which include relaxation from the Industrial Disputes Act (chapter V-B of the ID Act), Industrial Employment (standing orders) Act (that would allow greater freedom to outsourcing) and Factories Act (so that the 48-hour per week working hours could be extended to 60 hours a week).

The scope of Essential Service Maintenance Act could be made applicable to the textile sector by providing the facility of engaging workers beyond the normal working hours for achieving higher production, it suggested.

The SIMA memorandum has also suggested a special amnesty scheme for industries to exit on account of non-viability that would enable the units to have one-time settlement of State’s dues.

More Stories on : Textiles | West Bengal | Tamil Nadu

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