THE MINISTER OF STATE IN THE MINISTRY OF TEXTILES (SHRI E.V.K.S. ELANGOVAN)
a)The number of cotton / man made fibre textile (Non SSI)mills& Powerloom
units enlisted in the state of Andhra Pradesh during the last three years is as
below:-
(in numbers)
Sector Calendar- Calendar Calendar Total during Year 2003 Year 2004 Year2005 three years
(i) Cotton / man 2 4 1 7
made fibre textile
spinning mills
(Non SSI)
(ii) Cotton / man 2 9 Nil 11
made fibre textile
spinning mills (SSI)
Powerloom units 17 54 60 131
b) Government creates conducive policy environment to encourage setting
up of the textile units. The important measures taken by the Government
from time to time to help the textile sector of the country including those in
the State of Andhra Pradesh are as below:-
Technology Mission on Cotton (TMC) to improve productivity and quality
of cotton for manufacture and export of competitive downstream textile products;
Technology Upgradation Fund Scheme (TUFS) to facilitate the modernisation
and upgradation of the textile industry both in the organised and unorganized
sector.
Credit linked capital subsidy @10% under TUFS, in addition to the existing 5%
interest reimbursement for textile processing sector;
In order to facilitate modernisation of the Powerloom Sector, Schemes such as
High-tech Weaving Parks, Modernisation and Strengthening of Powerloom Service
Centers, Group Workshed Scheme and Credit Linked Capital Subsidy Scheme @ 20%
have been introduced.
To provide the textile industry with world-class infrastructure facilities the
“Scheme for Integrated Textile Park (SITP)†has been introduced in July 2005.
In 2004-05 Budget, the entire textile sector, except for man-made fibre and filament
yarn was provided optional exemption from excise duty.
In 2005-06 Budget, Central Value-aided Tax (CENVAT) on Polyester Filament
Yarn has been reduced from 24% to 16%.
Reduction in customs duty on import of textile machinery in 2005-06 Budget to
facilitate import of state of the art machinery to make our products internationally
competitive;
Launching of the Debt Restructuring Scheme w.e.f. Sept., 2003 with the principal
objective to permit banks to lend to the textile sector at 8-9% rate of interest.
Government has allowed 100% Foreign Direct Investment in the textile sector
under automatic route.
Government has de-reserved the readymade garments, hosiery and knitwear from SSI
sector so that large scale investments may be encouraged in these sectors.
National Institute of Fashion Technology (NIFT) has been set up to provide the
leadership role in sensitizing the Industry to the concept of value addition by in
ducting trained professionals to manage the industry.
