COIMBATORE: The Union Government’s budget has evoked mixed responses from leaders and exporters in the textile industry in Coimbatore and Tirupur districts.
Members of the Southern India Mills Association (SIMA) welcomed certain announcements in the budget that took note of their requirements and incorporated them in the budget.
“The government’s allocation of Rs 1,480 crore for the Technology Upgradation Fund (TUF) Scheme is inadequate and additional funds are needed to meet pending subsidies since September 2014. The government should give Rs 3,000 crore for this financial year,” Senthil Kumar,the chairman of SIMA, said.
Senthilkumar welcomed the reduction of basic customs duty on Man-made Fibre (MMF) from 5 per cent to 2.5 per cen.
The reduction in customs duty on MMF would marginally improve its competitiveness. The government could have avoided imposing a 2 per cent central excise duty without CENVAT credit (excise duty and service tax paid on raw material, fuel etc, for manufacturing of goods that is deducted from the excise duty payable on the goods manufactured) facility or 12.5 per cent central excise duty with CENVAT credit facility on branded ready-made garments and textiles priced above Rs 1,000.
A Sakthivel, president Tirupur Exporters Association, said that the focus on infrastructure and initiatives to promoting ease of doing business will improve the economy as well as reduce the transaction cost.
Sakthivel thanked Finance Minister Arun Jaitley for allocating Rs 3,350 crore to the textile industryt.
Sakthivel expressed his concern on excise duties on branded readymade garments and made- up textiles as according to him, it will adversely affect growth of the industry.
MSEs Unhappy
Even as trade bodies here welcomed several aspects of the 2016-17 Union budget, industrial bodies of the small and micro units are not much impressed as many of their long-pending demands have not been conceded.
The president of the Tamil Nadu Association of Cottage and Micro Enterprises (TACT) J James regretted the absence of any mention of establishing a Public Sector Unit and an industrial estate for micro units in the Coimbatore region, which he said is a long-pending demand.