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Panel set up to prepare roadmap for quota-free regime after 2005 

Sanjay Thapa  
New Delhi, July 19: The government has set up an `Apparel Millennium Committee' (AMC) under the chairmanship of textiles secretary, Anil Kumar, to prepare a roadmap to gear up for quota-free regime era after 2005 AD.

"AMC will discuss sytemic shortcomings and weaknesses with different ministries and submit its recommendations to the government to prepare for post-MFA challenge," said Raju Goenka, chairman of Apparel Exports Promotion Council (AEPC).

Four sub-groups have been set up for this purpose. The groups will deal with different aspects of exports like transportation, labour relations, fabric quality and banking problems, and they are to submit their reports to the committee by August.

AEPC is also seeking permission for retrenching two per cent of its workforce in order to improve productivity levels which are among the lowest in the developing countries.

In order to take on post-MFA challenges, garment exporters have also asked the government for a new relaxed labour policy permitting `hire and fire' and a higher foreign direct investment allowance in new textile sector that is awaiting clearance from the Union Cabinet.

It has also sought 100 per cent depreciation as allowed to other industries."At present our depreciation is around 15-25 per cent while the depreciation in the IT sector is 60 per cent," he said.

Garment exporters have also asked for updating the dock facilities for berthing mother vessels to help curtail the cost of Rs 3,000 crore, borne by exporters annually by using feeder vessels.

The exporters council had urged the centre to update docking facilities to generate confidence among operators, who at present shy away from touching Indian ports on account of deficiencies.

"Today 90 per cent of our shipments are sent by feeder vessels due to non-availibility of mother vessels," said exporters council, adding that if the facility was provided, a shipment to the US which now takes 30 days, would be delivered within 18 days.

The exports of garments in the first quarter of the current financial year was $1.44 billion as compared to $1.25 billion in the corresponding period last year.

The apparel export promotioncouncil is committed to achieving the target of $6.5 billion set by the government for this fiscal according to Goenka.

He further said that the garment sector has already achieved a target of 22 per cent increase in exports in the first quarter of current fiscal as compared to 16 per cent during the same quarter last year.

AEPC has also floated an exclusive website `WWW.IIGF.net' for providing enhanced and comprehensive information of the products, sizes, fabric quality and price range.

Copyright © 2000 Indian Express Newspapers (Bombay) Ltd.

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