With its aim to modernise the powerloom sector in the country, the Government has allocated Rs. 11,952 crores under the Revised Restructured Technology Upgradation Fund Scheme (RR-TUFS) to be implemented during the 12th Plan period.
The Textiles Minister, Mr. Santosh Kumar Gangwar, said in the Lok Sabha that to lay emphasis on the decentralised powerloom sector, interest reimbursement and capital subsidy for new shuttleless looms have been raised from five per cent to six per cent and from 10 per cent to 15 per cent respectively.
The margin money subsidy has also been increased from 20 per cent to 30 per cent, with an increase in subsidy cap from Rs. 1 crore to Rs. 1.5 crores.
The Minister said a pilot project has also been envisaged under the powerloom sector which aims at providing subsidy for developing infrastructure, common facilities, construction of factory buildings and for shuttleless looms on hire purchase basis to improve their quality and production and to face the competition from both the domestic and export markets.
“Capital subsidy has been increased from 25 per cent to 30 per cent for the handloom and silk sector, and margin money subsidy cap has been raised from Rs. 45 lakhs to Rs. 75 lakhs for MSMEs and the jute sector,” he said.
Mr. Gangwar disclosed that the scheme was evaluated thrice, in 2003, 2006 and in 2010, and all evaluations found the scheme beneficial for the textile industry and recommended its continuation. “These evaluations have found improvement in quality, turnover, productivity, profitability, exports, etc., and a decline in cost, wastage, maintenance and labour costs, etc.”
The Minister said the scheme was last reviewed by the Expenditure Finance Committee in March 2013 and it was recommended to continue the scheme in the 12th Five Year Plan.
On the poor Indian textile industry scenario, he said the meeting felt the UT offered good scope in the dyeing sector. Infrastructure available for discharge of industrial effluents is such that there is no threat to the environment. This facility should be used for revival of the well-being of workers.
The much-talked-about Textile Park should be set up, he said, adding that a committee should be set up with technical experts to work out modalities to reactivate the three major textile units – Sri Bharathi Mills, Swadeshi Cotton Mills and AFT Mill – in Puducherry.
There should be no room for vote bank politics and no piecemeal approach should be adopted to revive the three mills in view of their significant role in economic development of Puducherry, he added.