Texprocil signs pact with Uzbekistan

Mumbai: Uzbekistan will offer incentives for foreign investors in its textile industry on the condition that the textile products will be made from 100 per cent cotton, of which 30 per cent must be Uzbek cotton. This announcement was made at a meeting where the Cotton Textiles Export Promotion Council (Texprocil) signed a memorandum of understanding with the Uzbekistan Government for enhanced co-operation between the textile industries in the two countries. The incentives include exemption from all taxes such as income-tax and customs duty excepting payment of VAT. These concessions are valid until January 1, 2009. The MoU highlights the importance of working together in the field of exchange of information pertaining to the textile industry, visits by trade delegations to enhance mutual co-operation, participation in fairs and exhibitions in both countries and encouraging joint ventures and investment proposals. The MoU was signed by Mr Prem Malik, Chairman, Texprocil, and Mr Rahamtullah Ruzikulov, Minister of Light Industry, Uzebekistan, at a meeting held in New Delhi.