Amended MP industry policy to revive powerloom sector

In an attempt to revive the ailing powerloom sector in the state, the Madhya Pradesh government is likely to formally merge the powerloom sector with the department of commerce and commercial tax in the upcoming amended Industry Policy 2006.

The state had decided to merge the sectors two years back, but the decision could not be implemented.

An official in the department of industry and commercial tax will head the powerloom sector affairs.

At present, the Madhya Pradesh Handicraft and Handloom department is responsible for the powerloom sector.

The state government has already awarded 'industry' status to the powerloom sector, which produces more than 60 lakh metres of cloth.

"The trade and small-scale industries director will be given charge of the powerloom sector, in addition to his existing responsibilities. Provisions in this regard have been made in the new Industry Policy Draft 2006," a government source told Business Standard.

To boost sales of Madhya Pradesh-made yarn, there would be provisions of purchase of yarn from outside the state for use in textile units attracting a 2 per cent entry tax, the source added.

The government also has plans to bring garment and apparel parks under the Scheme for Integrated Textile Parks instead of earlier proposed Textile Centre Infrastructure Development.

The state has approximately 37,000 powerloom units, of which 33,000 are operational and centred at Burhanpur. However, extreme poverty, age-old technology, poor-market linkage and shrinking market demand have put them in a crisis.

The BJP government's announcement to award 'Industry' status to the sector has not brought any positive changes for the sector.