Hyderabad, May 10 (PTI) The Telangana government has
sought 50 per cent subsidy on yarn for the textile industry,
from the Centre.
Besides, it wanted the GST council to consider waiving
the tax on handloom products for two years, in order to
support the sector during the present difficult times.
In a letter to Union Minister for Textiles, Smriti Irani,
Telangana Minister for Industries and IT, KT Rama Rao
requested the Centre, as a short term measure, support of up
to 50 per cent of wages of the workers in the sector,
contingent on continued employment of workforce for 6 months
as a long repayable in the long run.
"Further, in order to encourage faster reboot of the
sector, the Government of India could consider 50 per cent
yarn subsidy across the handloom industry.
As a special case, the GST Council should also consider
complete waiver of GST on handloom products for a period of 2
years to boost the sector," Rao said in the letter.
Telangana has placed higher importance on the textile
sector, as also handlooms, with a view to creating jobs even
as the state is coming up with textile parks in Warangal and
Sircilla, with commitments from global and domestic investors,
the minister said.
KTR also urged the union minister to facilitate higher
temporary credit facilities up to 30 per cent of current
limits to meet the cash losses due to the ongoing lockdown to
contain coronavirus, to enable the industry to meet its
obligations towards its vendors.
In order to support the industry, on a medium terms
basis, there is a need to correct the inverted duty structure
under GST on man-made fibers, besides transferring subsidies
directly to cotton farmers accounts through direct benefit
transfer instead of offering a minimum support price for their
produce, Rao said in the letter. PTI GDK
Disclaimer :- This story has not been edited by Outlook staff and is auto-generated from news agency feeds. Source: PTI
More from Outlook Magazine