CITI seeks relief package to mitigate impact of COVID-19
The Confederation of Indian Textile Industry (CITI) has called for a government relief package for the textile and apparel sector to mitigate the effect of COVID-19 pandemic. The suggested steps include a moratorium on loan repayments to banks for the next fiscal and enhancing the Interest Equalisation Scheme (IES) benefits for textile and apparel exports to 5 per cent.
CITI chairman T Rajkumar, in a letter to Prime Minister Narendra Modi, suggested that all raw materials, dyes and chemicals, intermediaries, spares and accessories should be exempted from anti-dumping duty and basic customs duty.
Cotton yarn and fabrics should be included under the Rebate of State and Central Taxes and Levies (RoSCTL), IES and the Merchandise Exports of India Scheme (MEIS) benefits with immediate effect to prevent job losses for millions in the handloom, power loom and spinning sectors, Rajkumar said in a statement.
Soft loans equivalent to government dues pending in the books of individual textile units should be issued that could be adjusted soon as the government clears the dues. Bank interest rate should be reduced by 3 per cent, the CITI letter said.
The relief package is urgently required to ensure the survival of the sector that employs over 105 million people and earns around $40 billion in foreign exchange, he added.
