| In
a bid to assist the textile industry to meet the acute shortage of state-of-the
art machines, the export-import policy (exim policy) 2000 may permit the
import of used textile machines under the Export Promotion Capital Goods
Scheme (EPCG). The textiles ministry sources said that the measure would
benefit the textile industry in a big way as sections of the industry which
are incapable of huge capital investments would find this as a feasible
way to access the interest subsidy given under the Technology Upgradation
Fund (TUF). There is wide expectation in the industry that the policy
would bring scores of latest machines vital for sustaining the competence
of Indian textiles in the international market under the
cover of EPCG scheme which permits duty- free/concessional duty
imports of capital equipment under an export obligation clause. There
are also indications that the two EPCG schemes with 0% and 20%
import duties would be merged in the exim policy. With
the duties on capital goods imports being progressively reduced, the
scheme however has lost much of its sheen. Currently a dozen
machines for trimming and embellishment are permitted to be imported
on a duty free basis. This number is expected to go up three
times. |