16th July, 2003
Ministry of Textiles  


TEXTILE MINISTRY FAVOURS HIKE IN SUBSIDY TO MODERN LOOMS UNDER TUFS

PARLIAMENTARY CONSULTATIVE COMMITTEE OF TEXTILE MINISTRY MEETS


A proposal to increase the subsidy for modern looms to 20 percent is under the consideration of the Government to make the Technology Upgradation Fund Scheme (TUFS) more effective. This was disclosed by the Textiles Minister Shri Syed Shahnawaz Hussain while addressing the members of the Parliamentary Consultative Committee attached to his Ministry here today. He said, this proposal which is awaiting approval of the competent authority alongwith the other schemes of the Powerloom Package will help the Powerloom sector. The other schemes of the package include, a Group Workshed Scheme to create a better working environment and obtain higher productivity and improvement of other infrastructure facilities under the Textile Centre Infrasturcture Development Scheme (TCIDS). Another Scheme which has been approved is providing insurance cover to the powerloom workers against death, accident and disability under a special Group Insurance Scheme.

The Minister said, a number of steps have been taken to facilitate the quick modernisation of the sector. He said, the Government has initiated a scheme for modernising and strengthening of the Powerloom Service Centres (PSCs) run by the Ministry following the recommendation of a high power committee. The government seeks to achieve this by providing automatic/shuttleless looms and its accessories, training and teaching aids and other associate facilities. Performance parameters/targets have been fixed with special emphasis given to human resource development and testing textiles.

The Minister said, with the end of quota regime only 2 years away, changes have to be brought about in the policy. He said, with the removal of garments from the reserved list for SSI, it has witnessed unprecedented growth. He said, once the powerloom sector overcomes the discomfort of excise duty exemption withdrawal, the sector will zoom to a high growth trajectory.

Participating in the discussion members welcomed the steps taken by the Government for assisting the powerloom sector. However, they cautioned the Government that while doing so, the interest of the handloom weavers should also be kept in mind. They pointed out that workers in the powerloom sector and the handloom weavers are suffering because of the lack of marketing support. They urged the Government to extend subsidy to the handloom sector as earlier. They said because of the problems facing the sector, weavers have migrated to other areas.

Members of Parliament who attended the meeting are Shri C. Kuppusamy, Shri G. Rama Mohan, Shri Mohan Rawale, Shri G. Puttaswamy Gowda from the Lok Sabha and Shri R. Ramachandraiah from the Rajya Sabha.