FICCI demands special package for textile industry

Published: 30 Dec 2008 23:29:45 PST

Aimed at making the textile industry self-sufficient to face the current economic crisis, Federation of Indian Chambers of Commerce and Industry (FICCI) has sought a 'Special Textile Package' for the textile industry. Under the package, FICCI has demanded, among other things, moratorium for one year on term loans for the textile industry. It has also demanded increased drawback rates alongwith export credit at international rates. The industry body has pointed out that the profitability of the Indian textile industry fell by over 99 per cent in the June 2008 quarter. Along with the reduction of excise duty on man-made fibres, FICCI has also demanded release of the last year's pending funds under Technology Upgradation Fund Scheme (TUFS). It has also sought extension of the sunset clause for export-oriented units (EOUs) for five years.