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Union textiles ministry opposes import duty cut

The Union textile ministry has opposed the lowering of import duty on foreign textile products.

Union Textiles Minister R L Jalappa said on Tuesday that the finance ministry's attempt to lower the import duty to 10 per cent would be detrimental to the interest of Indian industry unless adequate funds were provided for technology and quality upgradation of the large Indian textiles units.

Casting doubts on the Centre's ability to allocate adequate finances for the various plan outlay, Jalappa said Rs 250 billion was required for technology upgradation schemes in the coming 9th five-year plan. He added that unless the finance ministry is able to arrange for such funds, Indian industry, particularly textiles, would be left in the lurch.

The Centre is now overburdened with finance commitment towards various food and fertiliser subsidies besides providing funds to the tune of Rs 183 billion towards the recent hike in salaries and wages of central government employees.

The minister met Maharashtra Chief Minister Manohar Joshi on Tuesday afternoon and discussed with him the proposal of handing over the central government-owned National Textiles Corporation mills to the state governments for management. He said the Maharashtra government could earn substantial revenue from selling the NTC mills' lands in the state and reviving the state's 35 mills through restructuring.

Joshi, meanwhile, has told reporters that his government would take a decision on the union minister's proposal within a month's time.

Expressing concern over the high cost of finances in the country, Jallappa said several procedural restrictions coupled with high bank interest rates had effected the competitive edge of our exporters. He promised that his ministry would incorporate various simplified procedures in the new export policy to be announced in the near future.

The federal textiles minister stated that he would prevail upon the finance ministry to direct the banks and financial institutions to provide cheaper funds to the small and sick industries for their revival and better performances.

In 1996-97, the synthetic and rayon textiles units posted an export of Rs 32 billion with an expected growth rate of 26 per cent in the current year. In the current year, the exports peaked up by 21.27 per cent in the first five months as against the growth rate of 3.3 per cent in the previous year.

UNI