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In an attempt to give a boost to the textile industry the centre has initiated some measures, while a few existing schemes have been restructured to face new challenges in the post-quota regime. The steps take by the Government are outlined below:
(i) Cotton development and research programmes like Integrated Cotton Development Programme (ICDP) have been launched.
(ii) Bacillus Thuringiensis (BT) cotton has been released commercially w.e.f. 2002-03 cotton season by government of India to fight pest resistance being faced by cotton farmers in major qualities of the crop.
(iii) Promoting integrated cotton cultivation (contract farming) involving availability of seeds, pesticides, fertilizers etc. to the farmers for obtaining desired quality of cotton.
(iv) Setting up of a Cotton Technology Mission with an outlay of Rs. 593 crores to improve the quality of cotton fibre at reasonable cost with a view also to export cotton at competitive prices in comparison to other exporting countries.
(v) Technology Upgradation Fund Scheme (TUFS) has facilitated modernization and upgradation of textile sector.
(vi) The import of a large number of capital goods of man made fibres/yarns industry has been allowed under concessional customs duty of 5 per cent. Besides, the cost of machinery has also been reduced through fiscal policy measures. Except for mandatory excise duty on man made filament yarns and man made staple fibres, the whole value addition chain has been given an excise exemption option.
(vii) 100% foreign direct investment is allowed in the textile sector under the automatic route.
(viii) The Government has dereserved the readymade garments, hosiery and knitwear from the SSI sector.
(ix) An Apparel Park for Export Scheme has been launched to impart a focused thrust for setting up of apparels manufacturing units of international standards at potential growth centres and to give fillip to exports. Under the scheme Government gives grants upto Rs. 17 crores per apparel park for infrastructure work, training and common facilities.
(x) Textile Centre Infrastructure Development (TCIDS) Scheme {Centrally Sponsored} has been introduced with the objective of modernizing infrastructure facilities at major traditional textile centres of the country. Government of India gives grant upto Rs.20 crores for a particular centre.
(xi) In order to facilitate modernization of the Powerloom Sector, Schemes such as High-tech Weaving Parks, Modernization and Strengthening of Powerloom Service Centres, Group Workshed Scheme and Credit Linked Capital Subsidy Scheme @ 20% have been introduced.
(xii) To facilitate import of state of the art machinery to make our products internationally competitive in post quota regime, in 2005-06 Budget, the customs duty on textile machinery has been brought down to 10% except 23 items of machinery appearing in List 49, which attract Basic Customs Duty (BCD) of 15%. The concessional duty of 5% continues to be at 5% on most of the machinery items.
(xiii) Government has launched the Debt Restructuring Scheme w.e.f. Sept.2003 with the principal objective to permit banks to lend to the textiles sector at 8.9% rate of interest.
(xiv) The National Institute of Fashion Technology (NIFT) has been set up to provide a leadership role in sensitizing the Industry to the concept of value addition by inducting trained professionals to manage the industry. This has resulted in an increased demand for trained professionals in various sectors servicing the industry.
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