Commerce Ministry has written a letter to Cabinet Division requesting the withdrawal of Textile and Apparel Policy 2020-25. The Finance Ministry’s harsh conditions on new fiscal incentives have compelled the Commerce Ministry to withdraw its Textile and Apparel Policy 2020-25 even though the ECC has already approved it.
On December 16, 2021, the ECC discussed the revised draft of Textile and Apparel Policy 2020-25 and approved it with the following amendments: (i) electricity and RLNG rates;(ii) the regionally competitive RLNG rates will be applicable on the processing industry;(iii) for the captive and the cogeneration units, a separate policy and (iv) comments of the Finance Division shall be made part of the proposed Textile and Apparel Policy 2020-25.
The committee recommends that the Ministry of Commerce and Ministry of Energy jointly devise a 2-3 months mechanism to target the energy regime to actual beneficiaries so that export-oriented sectors/ units of the textile industry would remain internationally competitive. However, it is before time to say if the request will be approved or refused. The news will hit the textile sector trying to deliver its best for the country. Earlier, the gas tariff has also been increased, causing a hike in the production prices and narrowing the profit margins.
