Question : SURPLUS EMPLOYEES OF APPAREL EXPORT PROMOTION COUNCIL



(a) the progress made under the Apparel Parks for exports and Textiles Centres Infrastructure Development Scheme during the year 2003-04 and 2004-05 till date;

(b) the number of projects cleared under the Apparel Parks Scheme during the above period, State and location-wise;

(c) whether the textile exporters face stiff competition from low cost suppliers like Bangladesh, China and Pakistan; and

(d) if so, the steps taken by the Government to increase the textile exports and solving the problems of Apparel Exporters?

Answer given by the minister

MINISTER OF TEXTILES ( SHRI SHANKERSINH VAGHELA )

(a) Government has sanctioned three projects under Apparel Park for Exports Scheme and eleven projects under “Textile Centre Infrastructure Development (TCID) Scheme” during the year 2003-04 and 2004-05 till date. The approved projects are under various stages of implementation. Central grant-in-aid amounting to Rs.14.79 crores has been released for various approved Apparel Park projects and Rs.11.95 crores for various approved TCID projects during the above period.

(b) The state-wise details of the projects sanctioned under ‘Apparel Park for Exports’ Scheme are given below:

(Rs. in crores)
S.No State Location Total Project Cost Central Share
1 Madhya Pradesh SEZ, Indore 29.07 17.00 2 Rajasthan Mahal-Jaipur 27.10 17.00 3 Maharashtra Butibori-Nagpur 16.20 13.15


(c) Yes, Sir.

(d) To strengthen domestic textile industry for meeting the growing global competition, the following important announcements have been made in the Union Budget 2004-05:

-	Except for mandatory excise duty on polyester filament yarn including texturised yarn, synthetic	and artificial fibres and synthetic and artificial filament yarns, the whole value addition chain	has been given excise exemption option.
-	Additional Excise Duty on Textiles & Textile Articles (AT&T) and Additional Excise Duty	(Goods of Special Importance) Act have been abolished.
-	Basic customs duty on various textile machinery and spare parts has been reduced to 5%. 



Beside, Government has been taking a number of steps from time to time to increase textile exports from the country. Some of the important initiatives taken are:

i)	The Government has de-reserved the woven segment of readymade garment from the SSI sector.	It has also raised the SSI investment limit for knitted segment to Rs. 5 crores. 
ii) The Technology Upgradation Fund Scheme (TUFS) has been made operational from 1-4-1999 to facilitate the modernisation and upgradation of the sector.
iii) Weaving, processing and garment machinery, which are covered under TUFS, have been extended the facility of accelerated depreciation at the rate of 50%. Cost of machinery has also been reduced through Fiscal Policy measures. This further encourages modernisation.
iv) With a view to making fabric production competitive, the custom duty on shuttleless looms has been brought from 15% to 5%.
v) National Institute for Fashion Technology (NIFT), its six branches and Apparel Training & Design Centres (ATDCs) are running various courses/programmes to meet skilled manpower requirements of textile industry especially apparel in the field of design, merchandising and marketing.
vi) Facilities by way of eco-testing laboratories have been created to enable exporters to get the garments/textiles pre-tested for conforming to the requirements of importing countries.
vii) The Government has launched a centrally sponsored scheme titled “Apparel Park for Export Scheme” for imparting focused thrust for setting up of apparel manufacturing units of international standards at potential growth centres and to give fillip to exports.
viii) For upgrading infrastructure facilities at important textile centers, a scheme ‘Textile Centre Infrastructure Development Scheme’ (TCIDS) has been launched. ix) The Export Promotion Councils have been undertaking export promotion events like participation in overseas exhibitions/fairs, organizing BSMs abroad, sponsoring trade delegations in consultation with Indian Mission at abroad.



A High Level Committee has been constituted under the chairmanship of Secretary (Textiles) for redressal of exporters’ grievances. The Committee meets periodically and efforts are made for quick redressal of the grievances of the exporters.