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The government would introduce a 10 per cent capital subsidy scheme for the textile processing sector, textile secretary, R Poornalingam said on Tuesday. |
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The subsidy would be applicable on 'selective machineries' and the Textile Commissioner would issue a formal notification to this effect by April-end, he said. |
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"The Cabinet approved the scheme two days ago. It would come into effect starting May and would continue for a year," Poornalingam said. |
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In this context, the textile commissioner, Subodh Kumar said, "We are waiting for the minutes of the cabinet meeting to arrive and would take about two days to issue the notification after that." |
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Meanwhile, the textile secretary ruled out the extension of the Textile Upgradation Fund (TUF) scheme which expires on March 31, 2007. The TUF has been operational since 1999 and comprises an interest subsidy of 5 per cent over 10 years. |
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"The textile industry expects an investment of Rs 30,000 crore this year," Poornalingam said. |
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He quoted data from the textile commissioner's office to reiterate that loan applications and disbursements have doubled in the last few months. |
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Meanwhile, the government wants State Bank of India to be the second nodal agency after IDBI for the TUF, the textiles commissioner, Subodh Kumar said Monday. However, he ruled out any possibility of SBI replacing IDBI. |
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Kumar said the idea is to have one consortium of banks under IDBI and another under SBI for the TUF. He said the government has written to the SBI management, which is yet to get back on the issue. |
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According to Kumar, the loan applications and approvals in banks towards the textile industry have registered a 100 per cent growth during the last few months. He said the industry requires investment of Rs 30,000 crore for the next 4-5 years. |
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"We need to upgrade our investment intentions," he said. Kumar was speaking at the 3rd KSA Technopak International Textile and Apparel Congress here on Monday. |
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Replying to a query on banks shying away from lending to the textile sector, Kumar said there has been a positive change in fortunes of the sector and banks, which are flush with funds, are eager to lend.
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Sop story |
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The subsidy scheme
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The Cabinet okayed the scheme of introducing a 10 per cent capital subsidy scheme for the textile processing sector two days
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New plans
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