An attractive textile policy will be announced soon by Tamil Nadu state government to promote investment and employment in the sector, said chief minister M. Karunanidhi during an award function organised by the Cotton Textiles Export Promotion Council (TEXPROCIL).

While giving export awards for 2008-09, the he appealed the investors from other states and other countries to make investments in the textile industrial units of Tamil Nadu, and assured them about offering the required assistance.

Mr Karunanidhi said that around four million workers earn their living from state’s textile industry and that the approval for instituting five integrated textile parks at various locations in the state — including, Kumarapalayam, Cuddalore, Vadipatti (Madurai district), Andipatti (Theni district) and Karur had supported the textile investment in the state.

While explaining the initiatives and policy interventions made by the government, the chief minister said he had announced a marine discharge project in the state assembly to prevent environmental degradation and enable textile units to meet judicial directives. The value added tax (VAT) has been removed from sales of cotton in the state by Cotton Corporation of India.

Moreover, hank yarn has been exempted from sales tax facilitating around 600,000 handloom weavers. Mr Karunanidhi praised union textile minister Dayanidhi Maran for releasing the pending amount of Rs 25.4 billion on time towards arrears under the Technology Upgradation Fund, and for taking measures to convert the Sardar Vallabhai Patel Institute of Textile Management in Coimbatore into an international textile business school.

The textile ministry will set up cotton depots across the nation if like Tamil Nadu other state governments too exempt resale of cotton from VAT, said Mr Maran. TEXPROCIL chairman V.S. Velayutham urged the chief minister to facilitate smoother power supply to the sector to fulfill export orders.

Source: http://www.aepcindia.com/national.asp?id=210&yr=2010