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Press Release

SHRI SRI NARAIN AGGARWAL ELECTED SRTEPC CHAIRMAN

Shri Sri Narain Aggarwal, Managing Director of Prafful Group of Industries, Surat has taken charge as the next Chairman of The Synthetic & Rayon Textiles Export Promotion Council (SRTEPC) at the 509th Meeting of the Committee of Administration held in Udaipur for a period of two years.

Shri Aggarwal has more than 30 years of experience in the textile field having been looking after the operational and financial aspect of the Prafful Group and is the main co-ordinator for implementing of new projects of the group.

Under his workmanship and guidance the group has established a Process House with latest machines of dyeing and printing at Sachin; Embroidery Unit capable of creation of latest designs of embroidery for Indian as well as overseas market at Sachin; wholesale, retail and export business of all types of textile fabrics of latest fashion under the brand name ‘Prafful’ and a manufacturing unit of nylon filament yarn at Panoli, Ankleshwar.

He was the Vice Chairman of The Synthetic & Rayon Textiles Export Promotion Council for two years and the Regional Chairman of Council’s Surat Regional Centre for a long period of time.  He has been holding many prominent positions including President of Agarwal Vikas Trust, Surat.  He is also the Executive member of Regional Advisor Committee of Central Excise and Customs; Southern Gujarat Chamber of Commerce in Surat and South Gujarat Processors Association.

Shri Aggarwal is also involved in various social and trade activities in Surat.

Date: 9th March, 2017


SRTEPC hails Union Govt's decision on Amended TUF Scheme

Union Government has announced the decision of CCEA to launch an Amended TUFS scheme, which is expected to create 30 lakhs jobs with an investment of One Lakh Crore. The decision is a welcome step in right direction and the credit for pushing it goes to Shri Santosh Gangwar, Hon’ble Textiles Minister.  The implementation is key as the office of Textile Commissioner will now play a major role to make it a success. The earlier TUFS did help in creating over-capacity in Spinning sector and the government's decision to make budgetary allocation for the committed liability of the earlier schemes comes as a great relief to the industry which is going through a tough time as it will help in reducing NPA’s in this sector.

What is important now is to see that benefits of capital subsidy proposed for weaving goes rightly to weaving sector which, is still fragmented spread all over India. The weakest link in Indian textiles, the processing industry and garmenting should have been the largest beneficiary being the highest employment generators. India, today losing out to neighbouring countries in both weaving and processing.  The inclusion of Technical Textiles is a significant step forward to infuse growth in this sunrise sector. The manmade textile sector which is capable of creating a real “Make in India”, a dream comes true is not encouraged in amended TUFS. Though, these policy decisions will definitely help in augmenting manufacturing in India. SRTEPC highly appreciate the efforts made by Union Ministers of Finance and Textiles in making it happen.

Anil Rajvanshi
Chairman

31st December, 2015


Foreign Trade Policy 2015-20

Completely Ignores the Potential of the Indian Manmade Fibre Textiles Industry:

The Government yet again has ignored the Textile Sector as a whole despite it being the largest employment provider in country.  The agony of Man Made Textile Industry which is highly capital intensive and the only sector capable to attract future FDI has been highly discriminated against cotton. Unfortunate but true that a sector which alone can help Government to achieve its ambitious target doesn't find mention in list of items granted liberal MEIS benefits under the FTP announced on 1st April 2015. 

Council has a number of times appraised the Government that the Indian Manmade Fibre(MMF) Textiles sector has still not reached 3.0% of world trade and is within threshold limit, while Cotton has crossed 5%.  Thus, both should be separately handled while allowing Chapter 3 benefits for promoting exports. 

It is also to be noted that Cotton, which pays no taxes, has still been given the high reward in the FTPS’s new scheme, MEIS, while the MMF Textiles that contributes Rs. 7000 crores as taxes and holds high potential is given lower reward rate as compared to cotton in the FTP. For Europe and USA, MMF products have been given lower incentives as compared to cotton textiles. The industry is deeply disappointed being greatly overlooked by both its administrative ministry, Ministry of Textiles as well as Ministry of Commerce.

The major emerging markets for MMF textiles are Latin American Countries(LAC), Far East and African Countries. In the FTP 2015-20, the benefits for promoting exports to these Countries have been completely stopped, that too abruptly, without giving any adjustment space to the exporting fraternity. The MMF sector has developed its space in LAC and African markets after lot of efforts. The Council held successful export shows in Chile, Columbia, Nigeria, Togo and Addis Ababa and could create niche market for MMF textiles.

Thus continued incentives are need for 1 or 2 years for strongly establishing and stabilizing MMF textiles in emerging markets. The sudden withdrawal of export promotion incentives will have severe implications on the export towards these markets, which have huge potential for MMF Textiles.

If the Government follow these kind of policies, How do we manufacture more in India? How do we promote ‘Make in India” in Textiles sector? During the Budget the long standing demand of MMF Textiles Industry for reduction of Excise duty from 12.5% to 6 % was overlooked. Further, no efforts have been made by the Government to neutralize the taxes between Cotton and MMF Textiles. While Cotton has zero taxes, the Poor and Common men who wears MMF Textiles Cloth are taxed the highest in the Country. 

Unless the Government wakes up and takes necessary steps immediately to boost production and consumption of MMF Textiles, India can never achieve their target of reaching from present US$ 110 billion to even US$ 200 bn. in next five years.

 

Chairman SRTEPC
Date: 4th April, 2015

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