The Hindu : Tamil Nadu News : Plastic manufacturers seek reduction in customs, import duties

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Monday, Sep 29, 2008
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Tamil Nadu

Tamil Nadu

Plastic manufacturers seek reduction in customs, import duties

Staff Reporter

Tirupur: The executive committee meeting of Tamil Nadu, Pondy Plastic Manufacturers and Merchants Association (TANPPA) held here on Sunday passed a resolution seeking reduction in customs and import duties on raw materials.

Disclosing the proceedings to reporters, G. Sankaran, president, TANPPA, said that considering the depreciation of rupee against the dollar in the last few months, customs duty of five per cent levied on raw materials should be abolished to make the segment competitive.

Similarly, additional import duty of four per cent imposed on raw materials should be waived.

These sops were essential for the revival of the plastic manufacturing sector since about 30 per cent of the raw materials like low-density polyethylene granules, PVC resins and high-density polyethylene granules, were being imported.

Excise limit

The Association also wanted an enhancement in the excise limit set for Small Scale Industrial (SSI) units from Rs 1.5 crore to Rs 5 crore, to offset the escalation in the cost of raw materials during this fiscal.

Mr Sankaran said that the governments of Tamil Nadu and Puducherry should take steps to impart skills development training to unemployed youth in plastic materials manufacturing technology. “Presently, there is a severe shortage of trained personnel,” he said.

Quality power supply

The TANPPA wanted the Government to provide uninterrupted power supply to its member units to reduce the production losses. In the last few months, about 35 per cent of production was affected owing to load shedding lasting for five hours a day.

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