Malegaon, Nagpur textile clusters to be upgraded

Textile clusters in Malegaon and Nagpur in Maharashtra are among six selected for an upgradation plan initiated in six states, Union Textiles Minister K.S. Rao said Friday.

Besides Maharashtra, similar textile clusters included are Bhagalpur in Bihar, Burhanpur in Madhya Pradesh, Sircilla in Andhra Pradesh and Tanda in Uttar Pradesh as part of a pilot project under Technology Upgradation Fund Scheme (TUFS).

TUFS has been launched to speed up modernization of the Indian textile sector and besides the In-Situ Scheme, the central f has also launched a Revised Restructured Technology Upgradation Fund Scheme, Rao said at the inaugural of the 5th FICCI-TAG 2013 summit here.

These schemes would encompass the entire textile sector including spinning, silk reeling and twisting, wool scouring, combing and carpet industry, manufacture of viscose filament yarn and staple fibre, jute industry and others eligible under the 15 percent capital subsidy, he said.

Though the central and state governments would provide help, Rao urged the textile industry to set up its own research and development and training facilities.

The six selected SSI powerloom clusters under the In-Situ Scheme were not covered unde the TUFS benefit scheme and and fell in the economically weaker and lower-end of powerloom units.

Incidentally, with 250,000 powerlooms, Malegaon is considered Maharashtra's key centre in the sector, but is presently passing through a grave crisis.

The In-Situ Scheme and the other measures are expected to give a mujch-needed boost to the sector largely manned by the minority sections of society.

"We are hopeful that these schemes announced will help revive the local powerloom industry, though the government has ignored some of our suggestions on the practical difficulties we encounter," said Malegaon Industrialists & Manufacturers Association chief Khurshid Ansari.

Rao also urged the need to amend labour laws to permit 24 hours shifts and night shifts for women in the powerloom sector on the lines of the IT & ITeS industries.

Textiles Secretary Zohra Chatterji said that under these schemes, with an additional allocation of Rs.11,952 crore under the 12th Five Year Plan, an investment of more than Rs.200,000 crores is expected.

Maharashtra's Principal Secretary, Textiles, Manoj Saunik said the new state textiles policy provides for additional interest subsidy over and above all subsidies provided under the central schemes.

The state government will soon announce a new scheme and delink TUFS with state policy to provide more incentives to the textile industry and make it globally competitive.