The textile industry here has welcomed the pension scheme announced in the interim budget on Friday for workers in the unorganised sector.
However, it wanted the government to revise upward the allocations for Amended Technology Upgradation Fund Scheme (ATUFS) and the Remission of State Levies Scheme (ROSL).
Chairman of the Southern India Mills’ Association P. Nataraj said, in a press release, that the pension scheme would benefit weavers in the power loom and handloom units and those employed in the small and micro textile units.
Similarly, the announcement of Rs. 6,000 a year for farmers having less than two hectares would benefit millions of cotton farmers. However, the budget allocation for two major schemes of the Textile Ministry would have a serious impact on the industry.
Issues in ATUFS
The government should sort out procedural issues in the ATUFS and increase allocation under the scheme.
It should also hike the ROSL rate and include cotton yarn exports for MEIS and IES benefits, he said.
According to Raja M. Shanmugham, president of Tirupur Exporters’ Association, the Income Tax benefit for individuals, monthly pension scheme for unorganised sector workers, and Rs. 6,000 for farmers are all welcome measures.
The knitwear industry hoped the government would revise upwards the allocation in the regular budget later this year for schemes of the Ministry of Textiles.