Textile Min to seek budgetary allocation of up to Rs 8K cr

The Textiles Ministry today said it will seek an enhanced budgetary allocation of up to Rs 8,000 crore for 2011-12 to realise the targets fixed for the growth of the sector.

The government had made a budgetary provision of Rs 5,608 crore for the textiles sector -- Rs 4,725 crore for planned expenditure and Rs 883.08 crore for non-planned expenditure -- in the current fiscal.

Asked how much budgetary allocation will be sought by the Textiles Ministry in the upcoming Budget, Textiles Secretary Rita Menon said, "Our aspirations are to the extent of Rs 7,000 crore to Rs 8,000 crore in 2011-12. This will help us to realise the targets that we have set for the growth across various fibre chains."

She, however said, lets see what the ministry get because it is the growth budgetary support divided out in ministries.

The ministry said with more funds it would plans to set up more mega clusters, the secretary said.

In 2010-11 Budget, the government had proposed a one-time grant of Rs 200 crore to the government of Tamil Nadu towards the cost of installation of a zero liquid discharge system at Tirupur to sustain knitwear industry.

Besides, Finance Minister Pranab Mukherjee had offered extension of existing interest subsidy of 2 per cent for one more year till March 31, 2011, for exports covering handicrafts, carpets, handlooms and small and medium enterprises (SME) sectors.

The Textiles Ministry plans to train 30 lakh people in the next five years, under an extensive skill development programme.