(a) whether the Government has introduced Depot Sales Scheme for Cotton in some parts of the country;
(b) if so, the details and the features of the scheme;
(c) whether it is proposed to extend the scheme to other parts of the country as well;
(d) if so, the details thereof; and
(e) the steps taken by the Government to promote medium and small spinning mills in the country?
MINISTER OF THE STATE IN THE MINISTRY OF TEXTILES (SMT. PANABAAKA LAKSHMI)
(a) to (d): Yes Madam, Cotton Corporation of India (CCI) had opened Sales Depots for cotton in Coimbatore and
Rajapalayam in the State of Tamil Nadu with effect from 8th February 2010. The Government of Tamil Nadu has
exempted levy of 4% VAT on cotton bales sold from such sales depots. The Scheme extends various benefits to
the textile mills which include inter-alia availability of quality cotton at the door steps of the mills;
saving in costs due to reduced need to maintain large inventories; savings in lead time, interest and
carrying charges etc. Opening of sales depots at Baddi (Himachal Pradesh) and Ludhiana (Punjab), has
been approved, subject to the exemption of 4% VAT from the respective State Governments
(e): The benefits under the Technology Upgradation Fund Scheme are available to the small and medium spinning
mills in the country.