Tirupur: The apparel export promotion council (Aepc) has warned the central government that if it failed to provide funds to the apparel exporters under supportive schemes, many export units would be closed and subsequently spark an unemployment crisis.
The statement has come after the central government scrapped the merchandise export incentive scheme (MEIS) under which incentives to the tune of Rs 500 crore was due for the units. APEC has pointed out that the Centre was yet to implement rebate of state and central taxes and levies (RoSCTL), launched in March, which is affecting the exporters.
“MEIS is one of the supportive schemes for the apparel industry to offset infrastructural inefficiencies and associated costs. It was suspended by the central government on August 1. Many exporters were not able to meet their working capital issues and are either forced to downsize or close their businesses,” vice-chairman of the council A Sakthivel said a letter to the union finance ministry.
As per the industry sources, more than Rs 500 crore is outstanding in the MEIS for the apparel exporters in Tirupur alone. “RoSCTL scheme is one of the most important schemes to ensure a rebound in apparel sector. Despite its announcement, it was also not implemented for the past nine months. The apparel exporters are long waiting to avail these benefits including its backlog in its predecessor rebate of state levies scheme,” Sakthivel said. “Further delaying to avail these benefits will ruin the industry and many exporters will close their business establishments that will cause more unemployment. So, they should be released to revive the industry.”
Published On : 10-12-2019
Source : Economic Times