2 mega cluster projects for the powerloom industry : Dr M.S. Mathivanan

Coimbatore: The two mega cluster projects for the powerloom industry announced by the Finance Minister would benefit not only the powerloom industries in the area where they are located but the entire State and the neighbouring States as well, according to Dr M.S. Mathivanan, Chairman, Powerloom Development & Export Promotion Council (PDEXCIL).

In a statement, he said the two powerloom clusters would come up in Erode in Tamil Nadu and Bhiwandi in Maharashtra. It was for the first time that the Government had announced such a project for the powerloom industry that played a pivotal role in the textile space.

These clusters, to come up at an investment of Rs 70 crore each, would have modern machinery, provide testing services, and have a computer aided design studio among others. And they would help in the development of international quality products.

‘Humane decision’:

Mr Mathivanan welcomed the increased allocation under the Technology Upgradation Fund (TUF) scheme. Mr C.R. Shanmughasundaram, President, Southern India Engineering Manufacturers’ Association (Siema), Coimbatore and Mr G. Rajendran, President, Coimbatore Industrial Infrastructure Association (COINDIA), felt the Budget was non-interventional and the humane face of the Government was evident in the farm credit waiver.

While lauding the Government decision to waive farm loans worth Rs 60,000 crore, doubling farm credit and reduction in cenvat rate for automobiles, they said continuance of Fringe Benefit Tax was an area of concern. The status quo in respect of the depreciation rate for plant and machinery, non waiver of import duty on copper, and exporters not getting any relief despite the rupee appreciation were worrying.

I-T concessions:

Mr Gibson G. Vedamani, CEO, Retailers Association of India, Mumbai, said the Income Tax concessions would generate disposable income among the middle segment of consumers and increase spending on lifestyle and consumer products. A combination of reductions and exemptions in excise duties in various product categories would push down the prices, further fuelling consumption.

Mr K. Ramasamy, Chairman, Roots Group of Companies, Coimbatore, said the personal Income Tax rate revision would trigger economic growth. But it was slightly disappointing that no change in corporate tax rates has been made nor the surcharge removed. The expectation of corporates for change in fringe benefit tax for some of the business expenses like travel also has not been met, he said.