Hosiery units apprise govt of their problems
Ludhiana Knitters Association has written a letter to the state government to apprise it about the problems of the hosiery industry. The association has asked the principal secretary of finance and taxation that the issues on taxation policy have been hampering the growth.punjab Updated: Jan 28, 2015 14:39 IST
Ludhiana Knitters Association has written a letter to the state government to apprise it about the problems of the hosiery industry.
The association has asked the principal secretary of finance and taxation that the issues on taxation policy have been hampering the growth.
Association’s general secretary Bhushan Jain said, “The capital goods of textile industry are mostly imported. Many textile units in east and west Europe and even USA are closing down due to higher cost of labour and other input charges. The used machines available there are like new machines with sufficient residual working life. The government should allow Export Promotion Capital Goods license for the import of the used machinery.”
He said there was an urgent need of technology up-gradation fund scheme (TUFS) for the growth of textile industry. “TUFS scheme has significantly helped the Indian textile industry to expand and modernise but there is still wide scope for further capacity expansion and technology up-gradation to meet the growing domestic and export demand of textile products,” he said. Ludhiana Knitters Association has also demanded that there should be an exhibition hall in Ludhiana so that the industry could display their goods at any point of time. At present the industry has to spend crores of rupees to set up exhibitions here.
Association president Ajit Lakra said Ludhiana textile cluster, which is one of the major garment exporter of India, is located far from the sea ports. The domestic freight cost to the exporters is very high affecting their competitiveness in the global market. “The freight subsidy was announced by Punjab government a few years ago but was never implemented. There should be a one percent subsidy to be paid to the exporters,” said Lakra.