Home textile gets 5pc extension in DBK benefit

Government to boost home textile segment has extended a five percent duty drawback benefit to the made-ups (including towels, bedsheets, curtains, decorative cotton products, etc) sector. This move has come as a big relief for made ups exporters passing through a difficult phase.

In June, the government had announced a Rs 6,000-crore package for the textile sector, aimed to generate 10 million jobs in the next three years in which the made-ups sector was left out. The government was urged to rectify this by the Cotton Textile Export Promotion Council (Texprocil). And, on Wednesday, the Cabinet approved the inclusion of made-ups in the apparel package, in a time-bound manner.

The package includes similar measures given to apparel such as additional 10 percent subsidy under the Technology Upgradation Fund Scheme, additional contribution under the Pradhan Mantri Rozgar Protsahan Yojana and Rebate of State Levies. The made-ups segment generates jobs for women and in rural areas, and the government has recognized this potential while announcing the measures.

Ujawal Lahoti, chairman, Texprocil said that this is a positive move by the government and a relief to exporters of made-ups, passing through a difficult phase as their products face duty disadvantage in the main market, the European Union, as compared to products from competing countries on account of preferential tariffs given to some of those.

According B K Goenka, chairman, Welspun Group, and co-head of the textile committee at the Confederation of Indian Industry, as the Made-ups manufacturers use locally made fabrics, the package is likely to boost the entire supply chain, up to yarn. It will boost exports beside employment.

R K Dalmia, senior president, Century Textiles & Industries, agreed that it would benefit the entire made-ups segment and help it compete in export markets.

Extension of the package would benefit companies in the segment — Welspun, Trident, Century Textiles, Indo Count and GHCL.