BUDGET WISH LIST   TEXTILE SECTOR an ailing Industry needs sops.     The Textile Industry which is the Second largest employer after agriculture in India employing around 35 million people.  The present position of the Textile Industry is in a very bad shape and needs various sops in the ensuing budget.   Reason for downfall of the Textile Industry is on account of   Ø      High interest rates on Working Capital Loan Ø      Lack of credit facility Ø      High Rawmaterial price Ø      Recession in US and Europe   All these factors resulted in the production decline of textile fabrics by 1.9% to 54966 million Sq.mts in 2008-09.   The 40% hike in Minimum Support Price to the Cotton by the Government in the last year has resulted in the steep rise in prices and fall in the demand for cotton in the domestic market which were reeling under financial crises.  Cotton prices in India continued to rise while Global price decline due to economic recession.   In view of the above the textile industry expects that Interest rate on the Working Capital has to be reduced and further Soft Loans is to be provided.  The Interest Rate on Working Capital needs facility as provided under Textile Upgradation Funds i.e. 5% rebate for Working Capital Loan.  Further the present power position throughout the Country is grim and there is an expectation that power rates may go up further.    Inview of this also the textile industry expects subsidy on the power to the extent of atleast Rs.2 per Unit to be reimbursed, which helps to reduce production cost.   BRIEF PROFILE   I, A S VEERANNA, is a Chartered Accountant and Fellow Member of Institute of Chartered Accountants of India.  At present I am the Chairman of Spinning Units at Davangere owning about 80,000 spindles..  I am also the Vice-President of Karnataka Textile Mills Owners' Association, Bangalore.  I am actively involved in the management of Textile Industry. Veeranna Athani.

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