New Delhi, Aug 31: An apparel millennium committee has been set up by the Apparel Export Promotion Council (AEPC) to suggest changes in labour laws concerning the garment industry in order to making it emerge competitive in the global market.The committee headed by the textiles secretary is significant in the context of the complete phase-out of textile export quotas under the multi-fibre arrangement by the year 2005.
The panel will also take into account labour laws, minimum wages and issues relating to productivity in competing countries before finalising its report.
The other terms of reference of the committee are to:
Ascertain and suggest formulation of policies to create a data bank in the area of fabric manufacturing as well as processing of relevance to the garment industry.
Recommend policies and study the quantum, type and process of fabrics imported into the country meant for re-exports as garments and study the indigenous production and process of these fabrics in India.
Suggest policies to create a data bank of the available stitching capacities and recommend a modernisation index for textile processing and 99bric production.
Incorporate the polices being followed by leading competing countries in the area of imports and exports, manufacturing, customs procedures, market techniques and suggest short-term as well as long-term measures to overcome the problems.The government has also been taking several steps from time to time to make the textile industry competitive in the global market. A technology upgradation fund scheme (TUFS) has been made operational from April 1, 1999 for the textile including the jute sector for a period of five years.
Under the scheme, public financial institutions like IDBI, IFCI and SIDBI will provide loans at interest 5 per cent lower than their prime lending rates.
A five-year export entitlement (quota) policy has also put in place from January 1, 2000 to provide continuity besides allowing textile mills the facility to import capital goods under the export promotion capital goods scheme (EPCG) at a concessional duty of 5 per cent against a stiff export obligation. Earlier, these capital goods were allowed to be imported at zero duty and at 10 per cent against the prescribed export obligation under the scheme.
Exports of cotton yarn by hundred per cent export-oriented units set up in the export processing zones has been liberalised in addition to permitting the garment makers to import, free of customs duties, certain categories of trimmings and embellishments.
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