STATEMENT
REFERRED TO IN REPLY TO PARTS (a) TO (g) OF RAJYA SABHA STARRED QUESTION
NO.*373 FOR 29.07.2009.
(a): There is a marginal decline in
exports and production of textiles items as per details given below:-
|
Year |
Exports (in billion
|
Production |
|
|
Yarn (million kg.) |
Cloth (in million
square
meter) |
||
|
2006-07 |
19.14 |
5,184 |
53,389 |
|
2007-08 |
22.13 |
5,512 |
56,025 |
|
2008-09 (Provisional) |
18.52 (April—February) |
5,328 (April—March) |
54,966 (April—March) |
|
% age decline* |
5.31 |
3.34 |
2.07 |
(*in 2008-09 over corresponding period of 2007-08)
(b): A list of forty textiles mills that have closed down on account
of reported financial and labour problems during the
period May 2007 to
January 2009 is annexed. However, these
problems cannot be attributed to the global economic slowdown, per se.
(c) & (d): The industry and the Government are
working in close cooperation to counter the adverse impact of the economic
slowdown. The Government announced two
stimulus packages on 7th December, 2008 and 2nd January,
2009 to boost exports, arrest the impact of economic slow down and to improve
liquidity. These measures/packages have
helped to meet the situation to a great extent and have helped build a positive
sentiment in the domestic textiles industry.
The industry is in an upbeat mood to upgrade technology, modernize and
expand capacities. The measures announced under the above two stimulus
packages, inter alia, include:-
i) Additional allocation of Rs.1400 crore under the Technology Upgradation Fund Scheme (TUFS) during 2008-09. Further, in the Union Budget 2009-10, an allocation of Rs.3140 crore has been announced under TUFS.
ii) Across-the-board cut of 4% in the ad-valorem Cenvat rate till 31.3.2009.
iii) Interest subvention of 2% upto 31.3.2009 subject to a minimum of 7% per annum on pre and post-shipment export credit (since extended to 31.03.10 in the Union Budget 2009-10).
iv) Provision of additional funds for full refund of Terminal Excise Duty/Central Sales Tax.
v) Enhanced back-up guarantee to Export Credit Guarantee Corporation (ECGC) to cover for exports to difficult markets/products.
vi) Refund of Service Tax on foreign agent commissions of upto 10% of FOB value of exports as well as refund of service tax on output service while availing benefits under Duty Drawback Scheme.
vii) Credit targets of Public Sector Banks revised upward to reflect the needs of the economy.
viii) State Level Bankers Committee would hold meetings for resolution of Credit issues of Medium, Small & Micro Enterprises (MSMEs).
ix) Guarantee cover under Credit Guarantee Scheme doubled to Rs. 1 crore with cover of 50%.
x)
xi) Duty Drawback on knitted fabrics enhanced retrospectively from 1.9.2008.
(e) to (g): Successive Union Budgets since 2004-05 onwards have accorded a special attention to the textiles sector. The announcements made in Budget 2009-10 are also growth oriented for the textiles sector. The Plan and Non-Plan allocation for the Ministry of Textiles have been substantially enhanced and the fiscal measures duly take into account almost all demands of the textiles sector. The Textiles specific budget announcements are as follows:-
Budget Outlays
(1)
Central
Plan outlay enhanced to Rs.4500 crore from Rs.4092 crore which is the largest ever allocation for the Textiles
Sector so far. Out of this, Technology Upgradation Fund Scheme provided Rs.3140 crore, Scheme for Integrated Textiles Parks provided Rs.397
crore, Rs.340 crore for
Handlooms and Rs.220 crore for Handicrafts Schemes.
Five Mega Clusters.
(2)
One
handloom mega cluster each in West Bengal and Tamil Nadu and one powerloom mega cluster in Rajasthan, new mega clusters for
carpets in
Direct Taxes-Benefit to
Exporters.
(3)
Adjustment
Assistance Scheme to provide enhanced Export Credit and Guarantee Corporation
cover at 95% - extended upto March, 2010.
(4)
Allocation
for Market Development Assistance Scheme enhanced to Rs.124 crore.
(5)
Interest
subvention of 2% on pre-shipment credit extended beyond current deadline of 30th
September, 2009 to March, 31, 2010
(6)
Sun-set
clauses for deduction in respect of export profits under sections 10A and 10B
of Income Tax Act extended by one more year
(7)
Fringe
Benefit Tax abolished.
Service Tax
(8)
Two
taxable services, namely, ‘Transport of Goods through Road’ and ‘Commission
paid to Foreign Agents’ exempted from the levy of Service Tax, if the exporter
is liable to pay Service Tax on reverse charge basis. However, present cap of 10% on commission
agency charges is retained. Thus, there
would be no need for the exporter to first pay the tax and later claim refund
in respect of these services.
(9)
For
other services received by exporters, Service Tax exemption for operation
through the existing refund mechanism based on self-certification of the
documents where such refund is below 0.25 per cent of FOB value, and
certification of documents by a Chartered Accountant for value of refund
exceeding the above limit
(10)
Export
Promotion Councils and the Federation of Indian Export Organisation
(FIEO) exempted from Service Tax on the membership and other fees collected by
them till 31st March 2010.
Customs Duty
(11)
Customs
Duty on cotton waste and wool waste reduced from 15% to 10%
Excise Duty
(12)
Excise
Duty on man-made fibre and yarn increased from 4% to
8%
(13)
Excise
duty on PTA and DMT increased from 4% to 8%.
(14)
Excise
Duty on man-made and natural fibres other than pure
cotton beyond the fibre and yarn stage increased from
4% to 8% under the existing optional scheme – will ease the problem of credit
accumulation
(15)
An
optional excise duty exemption provided to tops of man-made fibre
manufactured from duty paid tow at par with tops manufactured from duty paid
staple fibre.
(16)
Suitable
adjustments have been made in the rates of duty applicable to Domestic Tariff
Area clearances of textiles goods made by Export Oriented Units using
indigenous raw materials/inputs for manufacture of such goods.
|
|
|
|
|
|
Annexure |
|||||
|
List referred to in part (b) of Rajya Sabha Starred Question
No.373 for 29.7.2009 |
||||||||||
|
Details of Cotton / Man-made Fibre Textile Mills (Non-SSI) Closed as on 30/04/2009
& During Last Two Years |
||||||||||
|
S. No. |
Mill. No. |
Mill Name |
State |
Closure Date |
Reason |
|||||
|
|
|
May-07 to
April-08 |
|
|
|
|||||
|
1 |
0813009 |
SAI LAKSHMI IND.
P LTD |
Karnataka |
1-May-2007 |
Financial
Problem |
|||||
|
2 |
1713141 |
SRI MAPPILLAI
VINAYAGAR SPINNING MILLS |
Tamil Nadu |
1-Jun-2007 |
Financial
Problem |
|||||
|
3 |
1713174 |
SRI MANICKA
VINAYAGAR SPINNING MILLS |
Tamil Nadu |
1-Jun-2007 |
Financial
Problem |
|||||
|
4 |
1523219 |
JCT LTD |
Rajasthan |
3-Jul-2007 |
Labour
Problem |
|||||
|
5 |
1713277 |
SURAKSHA BHARTHI
MILL P LTD |
Tamil Nadu |
1-Aug-2007 |
Financial
Problem |
|||||
|
6 |
0821101 |
MINARVA MILLS
LTD |
Karnataka |
1-Sep-2007 |
Financial
Problem |
|||||
|
7 |
1713073 |
SREE NARAYANA
TEXTILES P LTD |
Tamil Nadu |
1-Sep-2007 |
Financial
Problem |
|||||
|
8 |
0813077 |
DODBALLAPUR
SPINNING MILLS P LTD |
Karnataka |
20-Sep-2007 |
Financial
Problem |
|||||
|
9 |
1713180 |
VETRI SPINNING
MILLS P LTD |
Tamil Nadu |
1-Oct-2007 |
Financial
Problem |
|||||
|
10 |
1713495 |
ARAVIND SPINNERS
(P) LTD |
Tamil Nadu |
1-Oct-07 |
Financial
Problem |
|||||
|
11 |
1613660 |
VISHNU LAKSHMI
MILLS |
Tamil Nadu |
11-Oct-2007 |
Financial Problem |
|||||
|
12 |
1713727 |
SREE VISALAKSHMI
MILLS P LTD |
Tamil Nadu |
1-Nov-2007 |
Financial
Problem |
|||||
|
13 |
1713461 |
KATHIRVEL
TEXTILES P LTD |
Tamil Nadu |
6-Nov-2007 |
Labour
Problem |
|||||
|
14 |
1713791 |
MINAR TEXTILE
INDUSTRIES LTD |
Tamil Nadu |
22-Nov-2007 |
Financial
Problem |
|||||
|
15 |
0813010 |
LALJI MANEKJI
IND. LTD |
Karnataka |
1-Dec-2007 |
Financial
Problem |
|||||
|
16 |
1913001 |
SHAMKEN SPINNERS
LTD (EOU) |
Uttar Pradesh |
12-Dec-2007 |
Financial
Problem |
|||||
|
17 |
0613007 |
MATTA YARN |
Haryana |
15-Dec-2007 |
Financial
Problem |
|||||
|
18 |
1613832 |
TAMARAI MILLS
LTD (THE CBE KAMALA MILLS) |
Tamil Nadu |
1-Jan-2008 |
Financial
Problem |
|||||
|
19 |
1312001 |
GOPINATH WEAVERS
CO-OP SPG. MILLS |
Orissa |
2-Jan-08 |
Financial
Problem |
|||||
|
20 |
1713280 |
PRIYADARSHINI
FABS LTD |
Tamil Nadu |
14-Jan-08 |
Financial
Problem |
|||||
|
21 |
1613470 |
K.
SIVASUBRAMANIAM SPINNERS P LTD |
Tamil Nadu |
13-Mar-2008 |
Labour
Problem |
|||||
|
22 |
1613588 |
NAINA MOHAMED
SPINNING MILLS (P) LTD |
Tamil Nadu |
20-Mar-2008 |
Financial
Problem |
|||||
|
23 |
0613006 |
K. K. SPINNERS
PVT LTD |
Haryana |
31-Mar-2008 |
Financial
Problem |
|||||
|
24 |
0523083 |
NAVSARI COTTON
& SILK MILLS LTD |
|
1-Apr-2008 |
Financial
Problem |
|||||
|
25 |
1713010 |
NAMAKKAL COTTON
MILLS P LTD |
Tamil Nadu |
1-Apr-2008 |
Financial
Problem |
|||||
|
26 |
0913003 |
THANIKUDAM
BHAGAWATI MILLS LTD |
Kerala |
9-Apr-2008 |
Financial
Problem |
|||||
|
|
|
|
|
TOTAL |
|
|||||
|
|
|
May-08 to April-09 |
|
|
|
|||||
|
1 |
1613194 |
PRASHANTH
TEXTILES LTD |
Tamil Nadu |
31-May-2008 |
Financial
Problem |
|||||
|
2 |
0613019 |
AGGARSAIN
SPINNERS LTD |
Haryana |
1-Jul-2008 |
Financial
Problem |
|||||
|
3 |
1713171 |
SRI RATHINAGIRI
SPINNING (P) LTD |
Tamil Nadu |
27-Aug-08 |
Financial
Problem |
|||||
|
4 |
1713044 |
SRI VINAYAGAA
TEXTILES(UNIT OF BALAJI MODERN) |
Tamil Nadu |
15-Sep-08 |
Labour
Problem |
|||||
|
5 |
0413336 |
HATHISING MFG.
CO. LTD |
|
1-Oct-2008 |
Financial
Problem |
|||||
|
6 |
0613958 |
MAHALAKSHMI
SPINNERS LTD |
Haryana |
1-Oct-2008 |
Financial
Problem |
|||||
|
7 |
1713367 |
ARCHANA SPINNERS
LTD |
Tamil Nadu |
1-Oct-2008 |
Financial
Problem |
|||||
|
8 |
0613027 |
MITTAL COT-FAB
(P) LTD |
Haryana |
18-Oct-2008 |
Financial
Problem |
|||||
|
9 |
1613907 |
THE SUGUNA MILLS
PVT. LTD |
Tamil Nadu |
24-Oct-2008 |
Labour
Problem |
|||||
|
10 |
0613039 |
SUNHERI COTTON
SPINNERS (P) LTD |
Haryana |
1-Nov-2008 |
Financial
Problem |
|||||
|
11 |
0411036 |
AHMEDABAD NEW
TEXTILE MILLS |
|
23-Dec-2008 |
Financial
Problem |
|||||
|
12 |
0613045 |
SAHIL INDUSTRIES
(P) LTD |
Haryana |
31-Dec-2008 |
Financial
Problem |
|||||
|
13 |
0423009 |
NEPTUNE SPIN FAB
LIMITED |
|
1-Jan-2009 |
Financial
Problem |
|||||
|
14 |
1613187 |
SRI NARENDRARAJA
TEXTILES LTD |
Tamil Nadu |
1-Jan-2009 |
Financial
Problem |
|||||
******