SIMA Chairman T Rajkumar said that Tamil Nadu urgently needs a comprehensive policy to sustain viability of huge manufacturing facilities and also attract investments for modernisation and value addition to make Tamil Nadu a global hub for textile manufacturing as textile policies of other cotton-growing states are stealing a march.
SIMA is working with the Government to draft the policy for the entire textile value chain and it had already submitted its proposal and had several rounds of discussions. He said that Government should consider VAT reduction on cotton textiles to 2 per cent from 5 per cent and removal of one per cent market committee cess on cotton and cotton waste. It also set a separate power tariff for the textile industry based on load factor and cost-to-serve basis.
