In its bid to boost development and investment in the Indian textile sector, government is likely to give a go-ahead to 25 new textile parks across the country this year. Rita Menon, Secretary, Union ministry of textiles opined that the textile ministry received 55 applications for setting up textile parks, out of which 25 are likely to be given permission by the Government in 2011. At present, there are 40 integrated textile parks created with a cumulative investment of Rs 29,000 crore.
Apart from providing more incentives to the processing sector, the government is also in view of a proposal to increase the size of the technology upgradation fund by 25% during the 12 Five-Year Plan, stated Menon on the sidelines of the National Garment Fair organised by the Clothing Manufacturers’ Association of India (CMAI). The secretary, talking about the new neutral fibre policy, stated that it has been delayed since the government has to deal with many sub-sections while framing the policy and the topic is now likely to come up for the cabinet discussion.
Meanwhile, Rahul Mehta, President, CMAI, expressing his concerns stated that the Indian garment industry is currently facing a rough time with high raw material prices and 10% excise duty. Menon said that the issue of 10% excise duty on branded readymade garments would be discussed with the Finance Minister after receiving statistics and a detailed report from the CMAI. On the 20% growth target for the technical textiles, Menon said the government would provide all possible support, including financial support, to companies in this field.
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