Mill owners ask for sops for ailing textile industry

On the controversial issue of disposal of surplus mill lands, Shah said that the proposal for undertaking the much-needed financial restructuring and modernisation was unfortunately caught up in a political wrangle.

“I fail to understand the reason behind opposing such a sound policy. The critics of the Land Sale Policy unfortunately fail to realise that their opposition, is slowing down efforts to avert closure of mills and to reopen closed units. In fact the critics are responsible for keeping the labourers in the wilderness,” he said.

Shah said while no one had objected when more than 40 lakh sq metres of land belonging to other industries, most of which were profitable, were sold to suit the owners who preferred either to close shop or to migrate to other places, such a hue and cry was being raised when the ailing textile industry wanted to dispose off land for restructuring and survival.

Expressing concern over the failure of the government to take corrective steps for the revival of the textile sector, Shah said at the central as well as state level, several measures had been taken to save one or the other sector, but no such steps were forthcoming for the textile sector. “According to media reports, the state government is considering extension of relief in sales tax and other state taxes to the beer manufacturing industry as a means to protect jobs of 8,800 workers. I feel the government should extend similar help to the textile sector too,” he said.

Shah has recommended remedial measures at the central as well as state level. At the central level, Shah feels that the anomaly in the tax structure can be corrected by reducing the additional excise duty in lieu of sales tax on processed cloth from eight per cent to two per cent and remove all unjustified and untenable exemptions for the small scale sector.

At the state level, the MOA has asked for permission for sale of mill lands on the same lines as in the case of other industries, reduction in sales tax on the inputs of the mill industry and supply of power at the rates available to powerlooms. It has asked the municipal corporation for reduction in water and sewerage charge and octroi duty.