Seeking extension of the interest subvention scheme to entire textile sector, members of the Texpreneurs Forum met Union Ministers and officials. The eligible sectors for the scheme would be announced shortly, the Union government had announced.
Secretary of the forum Prabhu Damodaran, who led the delegation, briefed the Ministers and officials about the need to give coverage of the scheme to spinning mills sector as well. With Ebitda (earnings before interest, taxes, depreciation and amortisation) coming down, and a majority of mills registering huge losses, the spinning sector is going through a tough period, Damodaran said. This is because of factors like China reducing yarn imports from India, and investments made on capacity expansion before 2010 in mills gone waste.
The forum’s demand include making cotton and fabric eligible for Merchandise Exports from India Scheme under Foreign Trade Policy at least for exports to China and Bangladesh, and making the use of yarns and fabrics of Indian origin mandatory for permitting duty-free imports of apparels from Bangladesh.