Date:23/02/2006 URL: http://www.thehindubusinessline.com/2006/02/23/stories/2006022302141900.htm

Back `Scrap benchmark pricing for imported shuttle-less looms'

G. Gurumurthy

Coimbatore , Feb. 22

THE Tamil Nadu Powerloom Federation, a forum for small-scale powerloom owners, has urged the Centre to do away with benchmark pricing for used, shuttle-less looms (weaving machines) imported under the Technology Upgradation Fund Scheme.

The powerloom body has said that the import of high-end looms is increasing, as more powerloom producers are technologically upgrading their weaving machines. Thus, the market price of used shuttle-less machines has shot up. The prices of the used machines quoted in the market are far higher than the benchmark prices fixed by the Government for TUFS. The mismatch has led to the powerloom owners investing in high-end, used weaving machines and they cannot fully benefit from TUFS, the Federation President, Mr M. S. Mathivanan, said.

At a recent meeting, the Federation made a representation to the Government, seeking the removal of benchmark prices for used, imported shuttle-less looms. It also called upon the Centre to extend the 50 per cent depreciation allowed for investments in high-tech weaving machines under TUFS beyond March 2004.

The Government had originally made TUFS applicable till March-end 2004, but later extended it to March 2007. However, it failed to correspondingly extend the facility of claiming 50 per cent depreciation for investment beyond March 2004, though TUFS was extended till March 2007. The Federation has also urged the Centre to co-terminate TUFS with the Eleventh Plan period (considering the modernisation of the textile industry) by extending the scheme beyond the year 2007.