« Top Headlines » Open DEMAT Account in 24 hrs  Delhi HC Rules GST Registration Cannot Be Cancelled Retrospectively Without a Clear Show Cause Notice (SCN)  Belated income tax return AY 2026-27: How to file, late filing charges and what you may lose  Major Financial Changes from August 1, 2026: ITR Deadline, RBI MPC Meeting, Tatkal Ticket Rules & More  Government proposes to ease tax relief conditions for offshore funds  TallyPrime Connected Banking: Automating Banking and Accounting  ITR Filing Deadline 2026: Is July 31 the Last Date to File Your Income Tax Return? Latest Official Update  ITR filing deadline nears: How to file income tax return online on e-filing portal - quick 15-step guide  Will the ITR Filing Deadline Be Extended Beyond July 31 for FY 2025-26? Here's the Latest Update for Taxpayers  Income Tax Refund Delayed for AY 2026-27? 5 Common Reasons Your Refund May Be Stuck and How to Fix It  ITR Filing 2026: FM Nirmala Sitharaman Asks Tax Officials to Let Honest Taxpayers Correct Genuine Mistakes  Will Your FCNR Deposit Stay Tax-Free After Returning to India? Tax Rules Explained for NRIs «  I-T collections rise 40% in West Bengal... SEZ board plans package for 'displaced'... » Plan panel opposes tax benefits for imported textile machinery September, 20th 2006 The Planning Commission is against a proposal to extend fiscal sops for importing second-hand textile machinery. It is of the view that any such incentive would bring in obsolete technology to the country. The proposal to allow a 5% interest waiver under the Technology Upgradation Fund Scheme (TUFS) to textile firms purchasing old machinery from abroad was mooted by the textile ministry. The ministry has demanded interest waiver as it would enable the import of affordable technology at the time when there is a shortage of textile machinery. The interest waiver is expected to encourage domestic firms to import used machines and equipment. But the Planning Commission feels that such an assistance will make India a junkyard of old machinery, government sources said. Therefore, the firms importing machinery will get no financial assistance from the government. The proposal for providing financial assistance for imported machinery was discussed at the Inter-Ministerial Committee meeting. According to sources, the textile ministry has also suggested a cap of five years on old machinery to ensure good quality imports. With few companies producing textile machinery, at present India imports most of the machinery from Europe or America. According to analysts, imported machinery is twice as costly as Indian machinery. So the textile ministry has been planning to promote the imports of second-hand machinery, which is affordable. Any move against an interest waiver would further restrict expansion of spinning capacity of Indian textile firms that are facing a stiff competition from China, said DK Nair, secretary general, Confederation of Indian Textile Industry. India has been lagging behind China as far as exports of finished textile products are concerned. The interest waiver was expected to enhance the production and exports of finished products. Analysts believe that since textile machinery, spindles for instance, has a life span of about 25 years, it makes sense to import 5-8-year-old machinery at a cheaper cost. India is already a major importer of textile machinery from Europe and America. Surpassing Turkey and China, India has become the largest importer of Swiss textile machines in the current year. Meanwhile, some European firms have already shown interest in setting up bases in India. For example, Sulzer and Rieter, the Swiss leaders in machinery, and Picanol, the Belgian machinery manufacturer, are in the process of setting manufacturing bases in India, industry sources said.