Sops sought for textile machinery units

By Our Special Correspondent

NEW DELHI, NOV. 13. The Associated Chambers of Commerce and Industry of India (Assocham) has demanded concessions for textile machinery units which are facing difficult times for the last four years.

The average capacity utilisation is between 30 and 35 per cent and about 15 units have closed recently due to imports of second- hand and new machinery, contends the industry.

In addition to demanding a ban on imports of second hand machinery, the industry has sought changes in the Central Excise Valuation Rules and simplification of the procedure for import of inputs at concessional rates.

The new Central Excise rules provide that the value of the captively consumed products should be determined on the basis of 115 per cent of the cost of manufacture of such goods.

Prior to the amendment, there was no reference to captive consumption of goods and the rule only applied to cases where price of comparable goods was unavailable.

The 15 per cent increase in manufacturing costs will cause hardship to companies incurring losses or having a low profit ratio as their products will be outpriced.

Assocham has suggested that the value should be determined on the basis of the company's manufacturing cost plus the average profit, if any, in the last three years.

Assocham has also stressed the need for simpler procedures for import of inputs at concessional rate of duty.

At present, a manufacturer has to get himself registered with the area Assistant Excise Commissioner and get a certificate indicating details of the estimated quantity of the goods to be imported. This is a time consuming procedure.

Inputs should be allowed to be imported without the certificate. Instead, an undertaking could be sought from the importer stating that an end-use undertaking will be submitted to the Excise Department within a given period.

Send this article to Friends by E-Mail

Section  : Business
Previous : Bank of Ceylon's re-organisation
Next     : Reaping the whirlwind