The Union government's announcement of the Rs 6,000 crores special package for the textile and garment sector is set to add glitter to the country's largest man-made fabric (MMF) sector in Surat. The industry is eagerly awaiting the fine print of the textile package.

However, industry leaders feel primary details shared by the Finance Ministry on the special textile package like the five per cent additional duty drawback, refund of the state levies and the increase of subsidy in the amended technology upgradation fund scheme (TUFS) from 15 to 25 per cent will provide a level-playing field for the textile exporters facing tough completion from their counterparts in China, Bangladesh and Vietnam.

Narain Agarwal, Vice Chairman, The Synthetic & Rayon Textile Export Promotion Council's (SRTEPC) points out the special textile package is a booster dose for the ailing textile sector. It's going to be a win-win situation for the textile exporters and manufacturers. The amended TUFS subsidy hike will allow more and more textile entrepreneuers to invest in newer technology to boost production. The benefits of additional duty drawback and the refund of state levies will help boost the exports of fiber, yarn, fabrics, etc.

Dinesh Zaveri, Secretary, Man-Made Textile Research Association believes the special package will boost textile exports from Surat and other parts of manufacturing centres in the country. At present the duty drawback on spun fabric, nylon and filament fabrics ranges from 3 per cent to 8.6 per cent. If the additional five per cent is added, the filament fabric export alone will get duty drawback benefit of around 14 per cent.