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The Textile Magazine
MARCH 2012
the only place in India which produces yarn of all
counts.
The textile industry in general was upbeat on the
measures announced in the Budget. Mr. Debashis
Poddar, CEO of the Textile Division of Bombay
Dyeing, said that there’d be a five per cent saving
on modernisation expenditure, and it would also en-
courage expansion.
The powerloom segment, too, has no complaints.
Mr. Bharat Chhajer, Chairman of the Powerloom
Development & Export Promotion Council (PDEX-
CIL), said that for the first time, special attention
had been given to the sector and “our demands have
more or less been met”.
Pointing out that the textiles segment was the
largest employment provider after agriculture, the
Textiles Minister, Mr. Anand Sharma, said all these
steps will help in technology upgradation, value ad-
dition and job generation in the sector.
Mr. A. Sakthivel, President, Tirupur Exporters’
Association (TEA), commented that the sector wel-
comes all these measures but is concerned about a
small cut in excise duty payment on branded gar-
ments. Excise duty would now be charged at 30 per
cent of the retail sale price against the existing 45
per cent, though the industry had requested for full
excise duty exemptions on branded garments.
Budget boost for
textiles
- Two mega clusters (in Andhra Pradesh and Jharkhand)
- Dormitories for women workers in the mega clusters
of handloom and powerloom
- Three Weavers’ Service Centres (one each in Mizo-
ram, Nagaland and Jharkhand) to provide technical
support to poor handloom weavers.
- Rs. 500-crore pilot scheme for promotion of geo-tex-
tiles in the North-East
- Rs. 70-crore powerloom mega cluster in Ichalkaranji
in Maharashtra to help local artisans and weavers
- Rs. 5,000-crore Venture Fund with SIDBI to enhance
availability of equity to the MSME sector
- Weighted deduction at 150 per cent of expenditure
incurred on skill development in the manufacturing
sector to overcome shortage of skilled manpower
- To modernise weaving sector, full exemption to au-
tomatic shuttle-less looms from 5 per cent basic cus-
toms duty
- Full exemption from basic duty to automatic silk reel-
ing and processing machinery and its parts
- Retention of existing concessional rate of 5 per cent
basic customs duty to new textile machinery; second-
hand machinery to attract 7.5 per cent basic duty
- Basic customs duty on wool waste and wool tops re-
duced from 15 per cent to 5 per cent
- Full exemption from basic customs duty to aramid
yarn and fabric used for the manufacture of bullet-
proof helmets
- 10 per cent excise duty applicable to branded ready-
made garments with abatement of 55 per cent from
the retail sale price. Along with increase in duty to
12 per cent, abatement enhanced to 70 per cent. As
a result, the incidence of duty as a percentage of the
retail sale price would come down from 4.5 per cent
to 3.6 per cent.
- Extension of weighted deduction of 200 per cent for
R&D expenditure in an in-house facility beyond
March 31, 2012, for another five years to promote
investment in R&D.
Mr. A. Sakthivel,
President, TEA
budget 2012