Weavers fear defaulting on loan for imported machines
TNN | Jan 5, 2019, 04:00 IST
Powerloom weavers stated that 1,500 files are pending for subsidy approval at the textile commissioner’s officeSurat: Nearly 1,500 powerloom weavers in the city fear losing their high-end imported machinery as the central government has not reimbursed Rs 300 crore subsidy amount under the Amended Technology Upgradation Fund Scheme (ATUFS) since last three years.
Powerloom weavers stated that 1,500 files are pending for subsidy approval at the textile commissioner’s office under the ATUFS for 10% subsidy. The weavers had ordered machinery from foreign countries for taking benefit of the subsidy. However, the government is yet to release the subsidy amount due to which majority of the weavers are facing difficulties in paying the bank instalments.
The Federation of Gujarat Weavers Welfare Association (FOGWA) has demanded that the textile commissioner’s office should conduct an open house in Surat to resolve the grievances of the powerloom weavers who are yet to get the subsidy disbursement.
President of FOGWA, Ashok Jirawala said, “More than 1,500 subsidy files of the weavers are held up for subsidy disbursal citing minor mistakes like the mismatch of the dates of machinery import invoice and bank loan sanction, mistake in writing serial number and machine number in the invoice etc. The weavers have taken loans worth crores of rupees and now they are finding it difficult to pay the instalment amount due to non-disbursement of subsidy amount from past three years.”
Jirawala added, “We have demanded that the joint inspection team consisting of textile association, MANTRA, textile commissioner’s office should resolve the technical issues at the earliest by organising open house in the city. Out of the 7,000 files submitted for subsidy under ATUFS, only 70 has been approved for disbursal across the country.”
Powerloom industry leader, Ashish Gujarati said, “It is a double trouble for the weaving sector. On one hand we are not getting the utilisation of accumulated input tax credit (ITC), on the other the government is not approving the subsidy amount running into crores of rupees.”
Powerloom weavers stated that 1,500 files are pending for subsidy approval at the textile commissioner’s office under the ATUFS for 10% subsidy. The weavers had ordered machinery from foreign countries for taking benefit of the subsidy. However, the government is yet to release the subsidy amount due to which majority of the weavers are facing difficulties in paying the bank instalments.
The Federation of Gujarat Weavers Welfare Association (FOGWA) has demanded that the textile commissioner’s office should conduct an open house in Surat to resolve the grievances of the powerloom weavers who are yet to get the subsidy disbursement.
President of FOGWA, Ashok Jirawala said, “More than 1,500 subsidy files of the weavers are held up for subsidy disbursal citing minor mistakes like the mismatch of the dates of machinery import invoice and bank loan sanction, mistake in writing serial number and machine number in the invoice etc. The weavers have taken loans worth crores of rupees and now they are finding it difficult to pay the instalment amount due to non-disbursement of subsidy amount from past three years.”
Jirawala added, “We have demanded that the joint inspection team consisting of textile association, MANTRA, textile commissioner’s office should resolve the technical issues at the earliest by organising open house in the city. Out of the 7,000 files submitted for subsidy under ATUFS, only 70 has been approved for disbursal across the country.”
Powerloom industry leader, Ashish Gujarati said, “It is a double trouble for the weaving sector. On one hand we are not getting the utilisation of accumulated input tax credit (ITC), on the other the government is not approving the subsidy amount running into crores of rupees.”
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