COIMBATORE: The Southern India Mills Association (SIMA) has demanded a comprehensive textile policy for Tamil Nadu.
“A comprehensive policy for the entire textile value chain, from fibre to finished goods, that ensures financial viability and competitiveness of existing units in the State and encourages value addition is necessary,” SIMA chairman T Rajkumar told mediapersons here on Monday.
“If the State government implements such a policy, Tamil Nadu can attract investments of Rs 1 lakh crore in the textile sector in the the next seven to eight years and realise Chief Minister Jayalalithaa's Vision Tamil Nadu 2023. We have held six meetings with ministers of industry, textile, labour and finance and given suggestions to make the vision a reality,” he added.
Among the suggestions is reduction of value added tax (VAT) on cotton cone yarn from five to two percent to help spinning units, as Central sales tax is only two percent. “Maharashtra, a major textile manufacturing state, has reduced VAT and West Bengal has exempted hosiery yarn from VAT,” he said.
“The unique textile policies of other states have become a challenge to TN. The steep increase in transportation costs also affects us as we produce only five percent of the necessary cotton and get 95 percent from other states,” said Rajkumar.
