• Investment World
• eWorld
• Catalyst
• Mentor
• Life
• Canvas
• Praxis
• Urban Pulse
• Brand Quest

Our Bureau

Sisspa wants the Union Government to reduce the excise duty on cotton yarn from the present 8 per cent to 4 per cent and extend the excise duty exemption given to other SSI sectors to the small spinners.

COIMBATORE, April 14

THE South India Small Spinners Association (Sisspa) has said that the recent hike in the electricity tariff by the Tamil Nadu Electricity Regulatory Commission and the extension of the Cenvat duty have created an `abnormal' working condition for the spinners in the State. Small spinners, whose operations have become highly unviable, are the worst effected.

While the hike in the power tariff has pushed up production cost for the spinners, the widespread protest by the decentralised powerloom weavers against the Cenvat duty extension to fabric stage by the Union Government and the consequent stoppage of loom activity have led to the drop in the off-take of yarn produced by the small spinners, it said. To cope with the situation, the small spinners were forced to reduce their yarn production almost by half. Yet, there has been no improvement in the yarn market and the spinners continue to find the operating situation quite adverse.

In order to tackle the current situation, Sisspa has asked the Centre and State Governments to intervene. It wants the State Government to allow the spinning units to pay the electricity bill due for April in three instalments up to July.

It wants the Union Government to reduce the excise duty on cotton yarn from the present 8 per cent to 4 per cent and extend the excise duty exemption given to other SSI sectors to the small spinners.

The Sisspa President, Mr R. Chinnaiyan, in a statement, has also called upon the Centre to suspend the repayment of loans to the banks and FIs payable by the spinning mills for three months so as to enable the industry to tide over the current adverse market condition.

Article E-Mail :: Comment :: Syndication

Stories in this Section
CII's `India Club' to open up China for small-scale sector

Copyright © 2003, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line