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The Textile Magazine
SEPTEMBER 2011
SIMA
seeks immediate relief
package for industry survival
industry news
The Indian textiles and
clothing industry which
accounts for 4 per cent
of GDP, 14 per cent of in-
dustrial production and
around 12 per cent of
the country’s total ex-
ports, and provides di-
rect employment to 35
million people and in-
direct employment to 47
million people is current-
ly caught in an unprece-
dented recession caused
partly by external factors
and partly by Govern-
ment policy changes.
Addressing the media immedi-
ately after his election as Chair-
man of the Southern India Mills’
Association (SIMA) at the Associa-
tion’s AGM, Mr. S. Dinakaran, who
is the Joint Managing Managing
Director, Sambandam Spinning
Mills Ltd., said the textile industry
has been facing problems of yarn,
power and labour shortage, hard-
ening of bank interest rates, fre-
quent Government policy chang-
es, irksome hank yarn obligation,
etc. The topmost priority is to get a
bail-out package and avoid NPAs,
particularly in the spinning sec-
tor which is the worst affected in
the high volatile cotton and yarn
markets and lost over Rs. 15,000
crores in just five months.
The Association has already
taken up the issue with the Prime
Minister, RBI and all the Ministries
concerned with an appeal for a
two-year moratorium on repay-
ment of all loans and interest, in-
cluding for mills which have gone
for restructuring. It has also sought
restoration of DEPB / duty draw-
back benefits with effect from April
2010 and 4.5 per cent interest sub-
vention for export packing credit to
regain the industry’s export com-
petitiveness, as also removal of 10
per cent Central excise duty levied
on branded readymade garments
/ made-ups to boost domestic de-
mand.
He said SIMA has urged the
Government to expedite an-
nouncement of stimulus packages
to protect over Rs. 2 lakh crores of
investments in the textile industry
made under the TUF Scheme and
also the livelihood of over 92 mil-
lion people depending on the in-
dustry.
Mr. Dinakaran stressed the
Mr. S. Dinakaran,
SIMA Chairman