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Thursday, Oct 06, 2005

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IL&FS to get 1 pc as fee for promoting textile parks

Our Bureau

Coimbatore , Oct. 5

INFRASTRUCTURE Leasing and Financial Services Ltd (IL&FS), which has been identified by the Ministry of Textiles as the nodal coordinating agency for the promotion of projects under the centrally sponsored Integrated Textile Park Scheme (ITPS), would receive one per cent of individual project cost as professional fee.

The Ministry of Textiles has entered into a memorandum of understanding in this regard with IL&FS, according to Mr Poornalingam, Secretary, Ministry of Textiles.

IL&FS was said to have sought a commission or professional fee of 2.5 per cent of the project cost.

Talking to the presspersons at the sidelines of a symposium on knitwear exports at Tirupur, Mr Poornalingam said project proposal for 26 ITPS are on the cards across the country, and of this, the promoters of 12 parks have already obtained required lands. The total investment on these park ventures would be around Rs 300 crore benefiting 1,500 employees.

Mr Poornalingam said the Centre was determined that the operation of the textile technology upgradation fund (TUFS) scheme would not be further extended beyond 2007 and the investors in textile projects had to avail of this benefit before that period.

The terminal year of TUFS had been set as 2007, by then China would gain entry into the WTO set up.

When asked about the implication of the import of fabrics into India, especially from China, Mr Poornalingam said as compared to India's textile exports of Rs 60,000 crore, the import of textile items constituted only 2 per cent.

"The import of fabric was not a threat to domestic industry and we still have a duty protection mechanism," he said.

As for the growth of exports, he said the confusion in the conflicting export figures was partly due to the previous period adjustments shown in the customs data.

The April-June 2005 period had shown a 11 per cent growth in exports. The pace of investments in the textile projects was an indication that the sector enjoyed export potential.

This is reflected in the drawal of the capital subsidy under the TUFS which has gone up to Rs 350 crore during 2004-05 compared with Rs 220 crore in the previous year, he added.

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