Textile weavers urge government to expedite financial assistance to boost industry
today Jun 18, 2019
The Federation of Indian Art Silk Weaving Industry has urged the ministry of textile to expedite financial assistance to the weavers in Surat under the Technological Upgradation Fund Scheme.
FIASWI feels that the delay in the release of funds is hampering the industry resulting in unemployment. It has also requested the government to reduce the subsidy and simplification in processes to avail benefits of these schemes to boost the entire sector.
“More than 1,500 such applications are pending to avail support from TUFS. Delay in release of funds under TUFS is hampering expansion plans of these units, which could generate thousands of jobs,” Bharat Gandhi, chairman of FISWI, said in a statement.
“The Centre has reduced subsidy under the scheme from 30% to 10%, which should again be restored to 30%. There are 22,000 weaving units in Surat with more than 4.50 lakh power-looms. These units are providing employment to more than 2.50 lakh people in Surat and the surrounding areas. Most of these units are MSMEs, and are facing issues related to TUFS scheme,” Gandhi added.
Earlier, the Confederation of Indian Textile Industry had made similar demands to the textile ministry after textile exports from the country fell drastically from $38.60 billion in 2014 to $37.12 billion in 2018.
Goods and Services Tax Council is likely to meet soon and expected to take up rationalisation of rates in the textile sector in tune with global markets.
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