The Towel Manufacturers' Association of Pakistan (SC) has suggested that the cap of Rs 50 million per annum to one unit under the Technology Upgradation Fund (TUF) scheme, proposed by the Ministry of Textile Industry, needs to be re-visited.
Chairman of TMA, Southern Circle, Feroze Alam Lari, while forwarding suggestions relating to TUF scheme, said that the Ministry of Textile Industry had proposed that the assistance to one unit will have a cap of Rs 50 million per annum. However, if the unit has gone for matching capacities in backward and/or forward integration the cap for each sub-sector will be treated separately.
Regarding processing machinery feasible for made-up fabrics will be permitted only if investment is also made in down stream stitching capacity. The Ministry may allow 50-70 percent matching capacity. The TMA has suggested that since the textile industry, especially towel industry, is very poor in processing machinery, putting conditionality for downstream stitching capacity may harm the spirit of this sector. Normally, processor only doing processing work and stitchers provide only stitching works. Both are separate sectors.
On the question that investment shall be installed outside the limits where city government restrictions have not been imposed, and that minimum economic size for a unit would either be specified or depends on the discretion of the bank, TMA considered that minimum economic size unit should be decided by technical committee because if it is put on the mercy of banks then a lot of conflict will arise which may harm the spirit of TUF.
On shuttle weaving: minimum 36 looms with or without dobby/jacquard may be installed. Looms shall have appropriate configuration consisting of stop motions and bobbin change, etc; TMA estimated that for terry towel 12 shuttle looms are minimum quantity approved by the Association. However, for shuttle-less 8 looms are minimum.
On Ministry of Textile Industry's proposal that only new imported machinery is permissible, TMA suggested that new/old, not less than 10 years, imported machineries may be allowed as well. "We have to provide room for engineering industry by allowing local machineries".
The Ministry of Textile Industry has documented textiles machinery on the basis of HS codes. These codes were also used for SRO 809 to allow duty-free import of textiles machinery for the registered units. The machinery included in these specific codes may be considered along with the technological parameters by the technical committee. In addition to above, scope of the scheme can be increased/ decreased by including: machinery used for the manufacturing of machines used for the production of textiles products, government may add textile chemical and accessories industry as well, in identified technologies as defined by the technical committee.
The TMA said that this issue could be discussed after the issuance of draft SRO. TMA has also proposed following amendment in the existing clause relating to the scope of the scheme: Need to add PCT chapter 94.04 mattress supports; articles of bedding and similar furnishing (for example, mattresses, quilts, eiderdowns, sleeping bags, cushions, pouffes and pillows) fitted with spring or stuffed or internally fitted with any material of cellular rubber or plastics, whether or not covered.