says Shri Kamal Nath, Union Minister for Commerce & Industry after inaugurating 'One Stop IFCOMA Display Centre' at FDDI, Noida.

21st January 2005, could have been any other overcast afternoon, except for the rekindling of the enthusiasm and energy of the footwear component industry. This was done by the symbolic gesture of Sh. Kamal



Nath, Union Minister of Commerce & Industry when he lightened the lamp at "one stop IFCOMA display center". The center was formally inaugurated by him by cutting the ribbon.

Eminent dignitaries including Mr. Rakesh Suri, Mr. Raju Jalan, Mr. Moti lal Sethi, Mr. R.K.Pandey & Mr Tanvir Zafar all were present during his visit to the IFCOMA Display Centre.

The Union Minister of Commerce & Industry was enthralled and amazed to see the intrigue IFCOMA display center. He was briefed about the component industry by the IFCOMA members while taking a round of the display center. IFCOMA President, Mr. Mani Almal appraised the honorable minister about different products and components displayed in the window shelves. He was enlightened to see the variety of components such as soles, lasts, toe-putt and counters, Insoles, adhesives, linings, metal fittings packaging boxes, labels etc displayed by 35 companies in the window shelves and the overall arrangements. He took great interest and enquired in details about the functionality of each and every component that was exhibited in the display center.

A presentation was given to the hon'ble Minister by IFCOMA President on behalf of the Components Industry in the presence of IFCOMA members, Shoe Industry & CLE. Shri Kamal Nath was appraised about the size and growth of the sector in the last ten years in spite of the fact that several taxes and duties are levied on the component sector.

The memorandum also highlighted upon the various components that are used to make various types of shoes, raw material that is used by the component industry. An interactive session followed along with the presentation. President Shri Mani Almal presented a Souvenir to the Minister. IFCOMA represented on the anomaly related to the 3% duty free import Scheme (DFIS) for the Footwear exporters and requested the Honorable Minister to remove Excise duty on all items covered Under DFIS to give level playing field and to give boost to investment & employment in the component sector. Shri Kamal Nath reacted quickly and said "where there is excise there should be CVD".

Mr. Mani Almal suggested that a minimum 5% Custom Duty should be there to set off the Sales tax and other incidental taxes incurred by the domestic industries apart from other contribution to the country and also it should be irrespective whether or not the items are produced in our country to give lively playing field for the investment undertaken or to come in future.

It was suggested to exempt all components from excise or alternatively a max excise duty rate of 4% be levied in similar line of



textile sector as both footwear and textile are necessities for the common man in our country. Reduction in duty will reduce the cost of footwear and will not have any adverse impact the cost of footwear and will not have any adverse impact because the duty paid on raw materials would not be convict able when exempted.

Moreover the contributor to exchequer on footwear components and allied products are nominal due to the large number of units being under cottage, tiny and small scale. The present rate of excise is rather a hurdle in the growth of this important sector and is also having severe adverse impact on investment & employment. The excise component is very high and footwear manufacturers and exporter prefer to buy from non-excisable units.