PMO, Finmin Approval For Extension Of Interest Waiver Too
BUDGET 2008-09 is likely to provide a bailout package for six labourintensive sectors hit most by the appreciating rupee. Textiles, gems & jewellery, handloom, handicraft, marine and leather could be given excise duty waivers and an extension of interest rate subvention which runs out next month-end. Sources said the package had more or less been finalised with the finance minister and the Prime Minister’s office giving finishing touches to it.
Speaking to ET, sources said the V Krishnamurthy committee set up by the PMO had recommended special measures for the six sectors. “Though all recommendations may not be accepted, the finance ministry is likely to provide excise waiver and interest rate subvention,” an official said.
Gems and jewellery sector, which operates on very thin margins, could get a special package.
The duty rates are likely to be cut on certain items, like manmade fibres, leather goods and fishing equipment. All six sectors have experienced negative growth in exports in rupee terms in the first three quarters of the fiscal.
Domestic production has also taken a beating due to cheap imports. The performance of textiles and handicrafts has been especially bad. Textile and handicraft hubs like Tirupur, Moradabad, Ludhiana and Jallandhar have seen many closures in the past year.