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Aatmanirbhar Bharat Package expected to create jobs in apparel sector
The Aatmanirbhar Bharat Package 3.0 will make the Indian economy robust, said A. Sakthivel, chairman of Apparel Export Promotion Council. Extension of Emergency Credit Line Guarantee Scheme (ECLGS) till March 31 and expanding the outstanding credit limit to ₹500 crore for the stressed sectors will go a long way in reviving many of the struggling industries, he said. The Focused Product Investment Scheme and the relaxations will open up new job opportunities in the apparel sector, he added.
According to Raja M. Shanmugham, president of Tiruppur Exporters’ Association, the announcements related to provident fund in the package will help the knitwear exporters provide employment to more number of people in the coming days. He urged the exporting units to make use of the package and the investment scheme.
The Federation of Coimbatore Industrial Associations, representing the micro and small-scale industries here, has said that many of the units started getting loans under the ECLGS in June this year.
The banks disbursed only 50% of the loan amount initially. They had to complete the registration formalities paying the stamp duty and registration fees to avail of the remaining amount. These units will not get the stamp duty benefit now. Hence, the stamp duty exemption and fee reduction should be implemented with effect from May 2020, covering all loans disbursed under the Aatmanirbhar Bharat scheme. The State Government should reimburse the stamp duty and registration fee paid by the industries already. The State Government should ensure hassle-free implementation of the relaxations, it said.
Meanwhile, the Focused Product Investment Scheme, announced by the Central Government, is expected to boost to investments in textile sector, especially in man-made fibre (MMF) and technical textiles segments.
T. Rajkumar, chairman of Confederation of Indian Textile Industry, said in a press release that ₹10,683 crore has been earmarked in the scheme for textile sector. It will promote greenfield and brownfield investments in 40 HS lines of MMF garments and 10 HS lines in technical textiles. “The scheme is likely to create 50 to 60 world-class global champion companies in these segments,” he said.
