The ministry of textiles has
taken up the problems faced by garment exporters due to the appreciation of the
rupee with the ministries of commerce and finance. This was disclosed by minister
of textiles Shankersinh Vaghela while addressing the meeting of the consultative
committee of the ministry of textiles.
in view the difficulties faced by the garment exporters, the minister informed
the members that the government has revised the duty drawback and DEPB rates,
which will benefit the textile sector.
addition, the premium on export credit guarantee have been reduced by 10 per cent
of the duty drawback and the rate of interest on pre-shipment and post-shipment
credit have been reduced by 2 per cent. The government has also released about
Rs600 crore to clear all arrears of terminal excise duties and central sales tax
reimbursement, the minister added.
the modified rehabilitation scheme of the NTC mills, the minister said that a
schedule of implementation has been drawn up to modernise its 22 mills at the
cost of approximately Rs540 crore. He hoped that 13 NTC mills would be completely
modernised by March next year and the remaining by March 2009.
the modernisation, the NTC is projected to produce 600 lakh kg of yarn and 250
lakh metre of cloth annually with a turnover of more than Rs.931 crore in the
addition, BIFR has also approved the modernization of 18 NTC mills through joint
ventures. Out of these 18 mills, two mills at Coimbatore are likely to be dropped
from the joint venture list due to improved performance and will be modernised
by NTC itself.
minister said that at present NTC is in the process of inviting proposals for
joint ventures with private entrepreneurs to modernize and run some of these mills.
He further stated that efforts of the government to move NTC towards profitability
has started bearing fruit and their dependence on the Government had come down
to Rs60 crore from Rs300 crore annually.