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Govt to provide subsidy to modern looms and review tax schemes
Mumbai, July 27: In a bid to improve the fortunes of the textile sector, the government would provide 20 per cent direct subsidy for setting up modern looms and review the textile schemes which were not yielding good results.
Mumbai, July 27: In a bid to improve the fortunes of the textile sector, the government would provide 20 per cent direct subsidy for setting up modern looms and review the textile schemes which were not yielding good results.
"We propose to provide 20 per cent subsidy for modern looms, not necessarily linked to the credit, further expanding the scope of the Technology Upgradation Fund Scheme (TUFS)," Union Textiles Minister Syed Shahnawaz Hussain said addressing a Powerloom Development & Export Promotion Council.
A proposal to this effect has been sent to the finance ministry and a decision was expected soon. The ministry was in the process of reviewing the schemes which provided very little benefit, he said adding the disbursement under TUFS was about 1.15 per cent of total disbursement, which was not satisfactory.
Upto May 31, 2003, about Rs 116 crore were sanctioned on 191 applications under TUFS for projects costing Rs 188 crore. However only Rs 52 crore were actually disbursed on 130 applications. The government would also look into the matter for opening up areas, which are reserved for the handloom sector, to the powerloom, he said.
The minister said an integrated approach would be followed while implementing the components of the powerloom package so that the funding for land infrastructure development fund technology upgradation can be accessed from the existing of Textiles Centre Infrastructure Development Scheme (TCIDS) and TUFS. Bureau Report
A proposal to this effect has been sent to the finance ministry and a decision was expected soon. The ministry was in the process of reviewing the schemes which provided very little benefit, he said adding the disbursement under TUFS was about 1.15 per cent of total disbursement, which was not satisfactory.
Upto May 31, 2003, about Rs 116 crore were sanctioned on 191 applications under TUFS for projects costing Rs 188 crore. However only Rs 52 crore were actually disbursed on 130 applications. The government would also look into the matter for opening up areas, which are reserved for the handloom sector, to the powerloom, he said.
The minister said an integrated approach would be followed while implementing the components of the powerloom package so that the funding for land infrastructure development fund technology upgradation can be accessed from the existing of Textiles Centre Infrastructure Development Scheme (TCIDS) and TUFS. Bureau Report