NEW INCENTIVE SCHEME FOR MODERNISATION
OF JUTE INDUSTRY
The
Ministry of Textiles has announced a scheme for modernisation
of Jute industry. While announcing the scheme, the Minister of
Textiles, Shri Kashiram Rana said that the additional resources
generated by the increase in Cess will be utilized for the modernisation
of the jute industry. The incentive scheme envisages an up-front
subsidy of 15% of the capital cost of specific machinery and equipments
for modernisation of the jute sector. All the items of machinery
identified under the TUFS will be eligible for this incentive.
In addition, other items crucial to the modernisation of jute
industry, identified by a Committee presided over by the Jute
Commissioner with representatives from Government and industry
would also be eligible for this incentive. However, those who
claim incentive under this scheme will not be eligible for claiming
benefit of other schemes of Ministry of Textiles like TUFS.
Jute
Manufacturers Development Council has already earmarked Rs. 4.5
crores for the modernisation of Jute industry during the current
year in its budget. A total investment of Rs. 200 crores is expected
for the modernization of Jute sector during the next three years.
In
the second scheme, the Minister of Textiles Shri Kashiram Rana
has already recommeded to the Ministry of Commerce (DGFT) for
finalising DEPB sector for Jute Export. The DEPB Committee has
finalized its recommendations and are expected to be notified
shortly. These rates will be applicable for jute yarn, geo- textiles,
hessian cloth, sacking cloth, hessian bags and sacking bags also.
Till now only jute bags lined with HDFC, LDPE/PP were eligible
for DEPB benefits.
The JMDC would provide an additional 5% incentive
under the External Marketing Assistance Scheme for the sale of
food grade jute bags to Africa and selected Latin American and
Central American countries. This was primarily done to encourage
exporters of food grade jute bags to compete in the Coffee and
Cocoa producing markets where such bags are in demand.
The
Minister also mentioned that the Jute Entrepreneurs Assistance
Scheme of the National Centre for Jute Diversification (NCJD)
which provided interest free loans for commercializing technologies
for jute diversification is proposed to be converted to an up-front
subsidy scheme of 15% of the capital cost. The orders are expected
to be issued in the near future.
Shri
Kashiram Rana urged the jute industry to make maximum use of these
incentives and modernize the industry and increase exports.
