9th May, 2002

Ministry of Textiles

 


NEW INITITATIVES TO MODERNISE POWERLOOM SECTOR


In view of the removal of Quantitative Restrictions (Q.R.) from 1st January 2005, there is a need to work in a coordinated and focussed manner to build a modern powerloom industry which will be able to face competition from domestic and export markets. Expressing the concern over the possible adverse impact of surge in imports in the wake of removal of Q.R., the Minister of Textiles, Mr Kashiram Rana said that Government is making efforts to make yarn available at reasonable price to the powerloom weavers at Bhiwandi, Ichalkaranji, Solapur and Malegaon through joint efforts of Maharashtra State Powerloom Corporation and N.T.C. North and South Maharashtra. While addressing the 3rd meeting of the reconstituted All-India Powerloom Board in New Delhi today, the Minister disclosed that a new scheme is being envisaged for making available indigenous semi auto, auto-shuttleless looms and allied machinery at a subsidized rate to the powerloom weavers who want to modernise but cannot avail bank finance. Besides, automatic and shuttleless looms have been exempted from excise duty and the import duty on shuttleless looms has been reduced. In order to boost export and formulate innovative marketing strategies, weaving, processing and garment industry have been identified as the thrust areas and that is reason, he said, garment industry has been taken out of Small Scale Industries reservation. A scheme for Integrated Apparel Parks has been started with the Central Government support. Two such Parks have been sanctioned - one in Surat, Gujarat and the other in Troica City, UP. Five others are under active consideration. In all sixteen proposals were received from the state governments, he disclosed. Mr Kashiram Rana told the members that forty-four Powerloom Service Centres are providing training, consultancy, design development support, textile testing and information dissemination in the country. Out of these, twenty one Powerloom Service Centres are equipped with modernlooms, accessories and teaching aids at the cost of Rs 16 crore. Fourteen laboratories of PSC's have been upgraded at the cost of Rs 11 crore for the benefit of the weavers. Moreover, for fostering value addition through new designs, motifs and patterns, seventeen Computer Aided Design Centres in the various textile centres have been sanctioned. Keeping in mind the welfare of the powerloom weavers an insurance scheme is being revised with greater financial share from Central Government. Mr Rana expressed the dismay over non-utilisation of the funds provided under Technology Upgradation Fund for textiles and Jute. Under the Textile Package 2001-2002, a major programme for modernisation of the powerloom sector by the induction of 50,000 shuttleless looms and upgradation of 2.5 lac semi and automatic looms in the decentralised powerloom sector was announced. But this sector, did not take any significant advantage of the scheme despite a number of relaxations like 5% rebate on interest reimbursement under TUFs, an offer of direct Capital Credit linked subsidy, exemption of 16% excise duty on automatic looms etc. But according to him the problem appeared to be because of inadequate book keeping by the weavers and the reluctance of the bankers to fund small projects. Mr Kashiram Rana urged upon the members of the Powerloom Board to come out with valuable suggestions for modernising the powerloom sector.

 
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