The Cotton Textiles Export Promotion Council (Texprocil) has urged the Government to disburse the committed support of about Rs 3,000 crore under Textile Upgradation Fund (TUF) scheme to help the industry tide over tough times.
Addressing the 64th Annual General Meeting, Ujwal Lahoti, Chairman, Texprocil, said the textile industry has been under severe stress since April 2014 due to the non-disbursal of committed liabilities under the TUF scheme. Several hundred mills, especially spinning mills, are facing closure and they are likely to become NPAs. An estimated Rs 3,000 crore dues towards committed liabilities remain unpaid under technology upgradation scheme for the textile industry, he said.
“We, therefore, need to urgently disburse the committed liabilities under TUFS scheme,” he added.
The Council even asked the Government to include cotton yarn under Merchandise Exports from India Scheme (MEIS) as it is the only product that has been deprived of export incentives despite a lot of value-addition within the country, while there is a strong case to double MEIS on fabrics to four per cent.
Besides, he urged including cotton yarn and fabrics under the ROSL (Rebate of State Levies) scheme as it faces many State levies as in the case of made-ups and garments. The central levies should also be factored under the ROSL as these levies are not being considered in duty drawback, he said.