Centre not doing enough for revival of spinning industry in Ludhiana: MP Sanjeev Arora

Tribune News Service

Nitin Jain

Ludhiana, August 11

Not satisfied with the reply given by the Union Textiles Minister to the revival of the spinning industry in Ludhiana, Rajya Sabha MP Sanjeev Arora has again raised the issue of the spinning industry in Parliament.

Speaking during Zero Hour, he sought the revival of the industry, which was suffering due to the “faulty” government policies.

One of the biggest employment generators with more than 1.5 lakh employees working in 60 units and annual turnover of over Rs 28,000 crore, the industry is in dire straits due to what the industrialists allege the “faulty” government policies, he said.

He said the textile industry contributed to 40 per cent of the country’s demand for man-made fibers.

“The government’s decision of not imposing definitive anti-dumping duty on imports of polyester yarn (polyester spun yarn), originating in or exported from China, Indonesia, Nepal and Vietnam, has cast a shadow on the domestic weaving sector, which is mainly dependent of various types of synthetic yarns,” Arora asserted.

He asked the government to reconsider the decision of not imposing ADD on PSY. Under the inverted duty structure on MMF chain, raw material, including viscose and polyester staple fibre, was taxed at 18 per cent whereas the yarn was taxed at 12 per cent, which created a huge accumulation of GST refunds, leading to blockage of working capital, inability to take GST credit on capital goods, besides time-consuming and cumbersome process for taking refunds.

“I would also urge the government for the removal of 11 per cent import duty on raw cotton, which was introduced in October 2021, and implement the BIS standards on polyester spun yarn (IS 17265) that had been repeatedly postponed and the next date for the implementation of the same has been fixed as October 5,” he said.

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