The Tiruppur Exporters’ Association (TEA) has called upon the Union Government to come out with another edition of the production-linked incentive scheme (PLI 2.0) for the textile sector.

In a memorandum to Union Finance Minister Nirmala Sitharaman, the Association noted that the current PLI scheme largely benefits large textile units, particularly those in the manmade fibre sector. To support small and medium-sized enterprises (SMEs), it suggested reducing the minimum capital outlay requirement and ensuring that the scheme also caters to cotton-based industries.

Additionally, the Interest Equalisation Scheme (IES), which was extended by the Ministry of Commerce and Industry from the original expiry date of June 30, 2024, by two months, should be extended to all units for a year, the association said. The Director General of Foreign Trade had extended the scheme for Rupee credit for pre and post-shipment for MSMEs.

The memorandum also highlighted delays caused by the Customs Department’s Compulsory Compliance Requirement (CCRs) when importing woven labels. Importers face delays of five to seven days, as Customs mandates group sample testing in laboratories, rejecting shippers’ lab reports or external reports from the country of origin. These delays affect export schedules, the Association said.

The South India Hosiery Manufacturers Association (SIHMA) said the government should extend capital subsidies to units investing in machinery. It also proposed the establishment of a Knitwear Board to support garment units in Tiruppur. Furthermore, SIHMA urged the government to take measures to control the import of garments from Bangladesh, which has negatively impacted smaller garment manufacturers in the region.

Published on: 15th September 2024

Source: The Hindu