Ahmadabad: Union Budget is around the corner, textile sector is losing all hopes of getting favorable moves. In spite of approx $62 billion worth textile industry of India, knocking on the doors of Union finance minister with a huge list of demands, negatively structured budget is being expected from Pranab Mukharjee. Industry, that resisted and survived even in extreme financial crisis, is now hoping of clocking around 10% rate in growth during 2010-11. In order to let the momentum keep rolling, incentives are expected from the government by the industry.

Primary focus of the Government for incentives is over the social sector, so textile industry is not expecting much better steps in the 2010-11 Budget. Certain things might come within this way under TUFS, Technology Upgradation Fund Scheme, apart from them most other demands are expected to be ignored, said players of the industry. Displeasure has already been expressed by Mr. Dayanidhi Maran over the issue of seeking incentives. He has been continuously insisting that industry people should concentrate over the alternative destinations for export and even in domestic market with the purpose of growth.

Amount of 4,500crores is waiting to be disbursed to the textile industry for TUFS; people dealing with the textile market believe that this demand is the only one that can be expected to be fulfilled in the Budget. Rs 1,500crores have been sought by the Confederation of Indian Textile Industry, in order to erase the backlog of 1009-10 and another additional amount of approx Rs 3,000crores for 2010-11. It is being expected that the finance minister might allocate some substantial amount under the TUFS category to the textile industry.

Extension of the stimulus package has been sought by CII, Confederation of Indian Industry for textile sector till the moment the exports start moving towards positive territory.

While presenting the pre-budget expectations by CII for the textile industry during the upcoming 2010-11fiscal, CII sub-committee Chairman, Manikam Ramaswami explained that so far the sector is quite satisfied with the extended support by the centre for overcoming the recession situation, exports still continuing to be hold back even in negative territory.We are expecting stimulus to exist till the textile exports gets turned in positive results at least for 2 consecutive quaters.

Mr. Ramaswami expressed that biggest worry for the textile market was nothing but none or delayed payment of interest subsidy arrears as investment rebates under (Technology, Up-gradation Fund Scheme) TUFS by Centre.
Defaulted amount which is due to textile units is approx Rs 1,500crores for the past 2 quarters. Budgetary earmarking, sought by CII is approx Rs. 5,000crores in the coming fiscal for providing arrear clearance and due amount of subsidy that will be falling in the coming 4 quarters.

Another demand that has raised relevance for Tamil Nadu includes a excise duty waiver for liquid fuels that is used during load-shedding hours by the units, he added.

Dayanidhi Maran, Textile Minister India explained he would be approaching the Finance Minister with raised demands by Andhra Pradesh for allocation of approx Rs 1.4billion in order to establish textile clusters within the state.
After undergoing a meeting with Andhra Pradesh’s delegation of minister, Maran remarked that his responsibility is to recommend and rest lays on the Finance Minister who’ll be taking the final decision.
The state has shown intentions for the establishment of 2 textile clusters, one at Dharamvaram and other at Srikakulum district. It is expected that the establishment of the clusters would result in extending common infrastructure to smaller units of textile and weavers too.
Agriculture Minister of Andhra Pradesh, Mr. N Raghuveera Reddy, explained that they have forced Textile Miniter, Mr. Dayanidhi Maran for the said purpose and that he has ensured that both projects will be probably sanctioned by 2010-11.