Textile Policy (2009-14) Rs two billion released for various schemes, incentives

The government has released Rs 2 billion for different schemes and incentives, announced in Textile Policy (2009-14), informed sources revealed to Business Recorder. The amount was released against Drawbacks on Local Taxes and Levies (DLTL), Export Financing Scheme and markup rates, sources revealed.
However no amount has been released against Employees Old-age Benefits Institution (EOBI) and Social Security. This was the first release in the current year, where the government has earmarked Rs 7.5 billion in budget 2012-13 for implementation of different initiatives of the Textile Policy. No amount was released in the first two quarters of the current fiscal year to the Ministry of Textile Industry.
Due to inadequate funds, some key policy initiatives have yet to be launched, which are not only causing resentment among the industry following huge pending liabilities under operationalised schemes, but also hampering projects execution and their timely completion. The ministry demanded Rs 30 billion for different initiatives that were integral components of the Textile Policy in the budget 2012-13, however the ministry later committed that the same amount released last year will be released during the current fiscal year, ie, Rs 7.5 billion.
Different schemes under the Textile Policy including Textile Investment Support Fund, drawback of local taxes, refund of past Research and Development (R&D) claims and magnetisation of Purified Terephthalic Acid (PTA) have been initiated but due to paucity of sufficient funds, all these schemes are in doldrums.
Officials maintained that under these circumstances, it is unlikely that the Textile Policy would achieve the desired results. Due to meager release against the promised amount by the government, most of the initiatives announced in the Textile Policy have not been implemented.
A total of Rs 24.75 billion have been released against the approved financial plan of Rs 123 billion for 2009-12 ie around 20 percent only, while projects worth more than Rs 6 billion are pending with the planning commission for the last two years. Industry sources maintained that industry is facing serious problems due to non-availability of gas and electricity therefore it is unable to consume domestic cotton and fulfil export orders.
Availability of utilities and subsidies provided by competitor governments are putting textile exports at a disadvantage in the international market. Due to financial constraints, textile sector's pending liabilities against the government under different schemes announced in the textile policy have swelled to over Rs 14 billion. This includes Rs 10 billion as DLTL.