The Government of India had approved a Rs. 6,000 crore-package in the year 2016 that aimed at improving exports, investments and employment in the country’s textile industry. Markedly, Rebate on State Levies (RoSL) scheme is a key component of this package whereby the textile exporters can claim refunds from the Centre for all the levies and duties they pay at the state level.
As stated by the Union Textile Minister Smriti Z Irani of late, the allocation for the RoSL scheme in 2018-19 has been stepped up by 39 per cent to Rs. 2,163.85 crores while Technology Upgradation Fund Scheme (TUFS) outlay also has been increased by 15 per cent.
Apparel Resources spoke to The Synthetic and Rayon Textile Export Promotion Council (SRTEPC) Chairman Sri Narain Aggarwal to discuss the developments. The association is an apex body of manufacturers and exporters of man-made fibre (MMF) textiles.
Aggarwal told us that the increase in RoSL allocation will certainly help in boosting the exports and ease the financial position of the textile exporters. Due to the current state levies and duties on textiles including yarns and fabrics which are embedded, a substantial amount of working capital has been blocked and the cost of exports has become uncompetitive. Payment of the backlog claims under RoSL will improve the financial liquidity of the industry, he pointed out.
However, the SRTEPC Chief opined that the yarns and fabrics should also be brought under the RoSL scheme. Currently, the benefits under the RoSL Scheme are available to garments and made-ups only. The textile industry and the SRTEPC have been suggesting the Government over the inclusion, he told.
As regards TUFS, the SRTEPC Head notes that there have been pending claims under this scheme and the enhanced TUFS funds will somehow ease the financial crunch faced by the textile industry to some extent.
TUFS provides generous support for technological upgradation – one of the key pillars for the growth of Indian textile industry. Further keeping in view the fragmented textile segments and MSMEs, the scheme becomes even more vital.
Furthermore, Aggarwal also apprised us that the textile industry has also been requesting for higher subsidies for weaving, knitting and processing under the ATUFS which the Government may consider positively.
