Pre-Budget Memorandum To TN Govt
The Tirupur Exporters’ Association (TEA), in a pre-budget memorandum 2015-16, submitted to chief minister, O Panneerselvam, before the state budget tomorrow urged the government to set up a State Textiles Board, and formulate a separate textile policy for Tamil Nadu.
These would help the government in taking a focused approach to the development of textile industry, TEA president, A Sakthivel said in the memorandum.
Similar to the textile policies of Maharashtra and Gujarat governments, the Tamil Nadu textile policy should provide 5 per cent interest subsidy and 10 per cent capital subsidy towards modernisation and expansion of capacity in existing units, TEA said.
Incentives for promotion of technical textiles, and capital subsidy for setting up various types of effluent treatment plants (ETPs) and a dedicated power station for the Tirupur knitwear cluster were among the other demands put forward by the association.
In a separate pre-Budget representation, Coimbatore-based Indian Chamber of Commerce and Industry (ICCIC) demanded a reduction in the Value-Added Tax (VAT) levied on cotton, cotton yarn and synthetic yarn to 2 per cent.
Stating that the current system of e-payment of VAT is cumbersome, ICCIC also urged the government to liberalise the mode of VAT payment by allowing that through other options.