A committee headed by a Nabard director has submitted its recommendations to the government. The loan and interest components would amount to about Rs 1,200 crore.
Vaghela said the ministry had asked the government to consider removing the 14 per cent customs duty on cotton imports. The production of cotton is expected to touch 33 million bales this year, of which about 10 million bales would be exported to China and other countries.
"The textile sector is a sunrise industry and we want to maximise the employment and forex earnings,'' he said.
The Centre has asked state governments to extend subsidies to powerlooms and make the labour laws more liberal to attract more workforce. Andhra Pradesh and Maharashtra are in the forefront of extending these incentives.
The ministry recently started National Institutes of Fashion Technology at Shillong, Bhopal and Patna. It is planning one more institute in Mauritius through a private partnership. The ministry has also agreed to start integrated textile parks at Visakhapatnam, Mahboobnagar, Anantapur, Pochampalli and Nellore in Andhra Pradesh.
The government would extend up to Rs 40 crore subsidy for setting up these integrated textile parks, Vaghela said.
