First, subsequent to the changes in the ETS, they are now allowed to transfer their quota to big exporters unconditionally. These exporters had been adversely affected after the introduction of Electronic Transfer Scheme (ETS) in September last and had been representing to the government to bring about a change in the modalities of the scheme.

Second, the threshold limit for availment of zero duty EPCG scheme has been lowered from Rs 20 crore to Rs 1 crore for the garment sector. Further reduction in this limit to Rs 50 lakh is not ruled out.

Third, the government has announced the much-awaited Rs 25,000crore TUF that would help garment exporters, among others get concessionalfinance to adopt latest technolgoy.

The relief comes in the wake of the Ministry of Textiles deciding last week to modify the ETS for garment exporters by allowing mutual transfers of quotas without any precondition except that such transfers should also appear on the screen.

The transparency in the transfers, which was the basic objective of the scheme would however, still be fully ensured by dissemination of information relating to the identities of the buyer and the seller, the quantity transferred and the price at which the transaction has taken place in the mutual transfer.

ETS was introduced in September last year aimed at making the quota available to needy exporters at a reasonable price, simplification of procedures and reduction in the time obtaining the quota.

Exports of readymade garments has crossed the Rs 5 billion mark during calender 1998 after having registered growth both in dollar as well as rupee terms. Volumewise, 1,2337.5 million pieces of readymade garments were exported valuing$5,048.7 million (Rs 20,834 crore) which was 17.29 per cent higher in rupee terms and 3.81 per cent in dollar terms and 2.77 per cent in terms of quantity.

Exports during 1997 were placed at $4,863.6 million ($4.8 billion) or Rs 17,763 crore.

According to textiles minister Kanshiram Rana, the government is committed to the improvement of the textiles industry. However, Rana while announcing the changes in the ETS last week, urged the garment exporters to embrace modern technology and upgrade quality to prepare themselves to face the market forces which are going to determine the global trading regime in the post multifibre arrangement (MFA) period. With a view to facilitate access to duty-free inputs standard input-output norms for about 300 textiles and clothing export products have been prescribed.

Further, the government has also reduced interest rates on pre- and post-shipment credit from 11 per cent to nine per cent for the remaining period of 1998-99.