Indian Goverment Raise Textile Fund
Post 1 of 4
29 Feb, 2008 - India
Government on Friday proposed to raise by a fifth the allocation for the federal government-sponsored textile Technology Upgradation Fund to boost modernisation and expansion of the industry.
Government on Friday proposed to raise by a fifth the allocation for the federal government-sponsored textile Technology Upgradation Fund to boost modernisation and expansion of the industry.
The funding would be increased to Rs 1090 crore from Rs 911 crore a year ago, Finance Minister Palaniappan Chidambaram proposed in the budget for 2008/09.
The fund, launched in 1999, gives textile units a 5 per cent interest reimbursement for modernising and expanding capacity.
Investments worth Rs 86000 crore have been mooted under the scheme, the federal textile ministry's Web site showed. The finance minister also allocated Rs 1 crore to set up six textile clusters focusing on products such as garments, handloom and fabrics across the country.
The announcement, however, failed to boost shares of textile firms or textile machinery manufacturers. Shares in Alok Industries, Welspun India, S Kumars Nationwide were down between 0.8 per cent and 2.5 per cent. Shares in textile machinery makers Lakshmi Machine Works and Batliboi were up 1.5 per cent, largely unchanged from before the announcement.
03 Mar 2008 23:51
Post 2 of 4
Replying to [ange]:Shares are down just because of the down trend of the market.The fundamentals of the companies ae nothing to do with it.
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About Our Company
CIL Textiles Pvt. Ltd.
CIL TEXTILES PVT. Ltd. Is committed to the production of high quality technical and performanceFabrics for use in wide range of Industrial Markets including, but not limited, Tent and Awning, Outdoor Furnitur...
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05 Mar 2008 22:27
Post 3 of 4
in order to search the largest profit clients always suppose your price is high.You could ask them how much does it,what is their mind price.
07 Mar 2008 23:41
Post 4 of 4
Dear Ange,
The policy decisions have longterm effect. The decision will definitely boost the textile industry and exports.
As far as shares are concerned, they have nothing to with the announcement...there are various other factors affecting the markets. Such announcements have rarely any immediate effect in teh market
20 Mar 2008 20:28
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