Nabard, Sidbi To Part Fund Loom Sector Modernisation

Addressing the press after chairing the second meeting of the re-constituted All India Powerloom Board held here, Jallapa said Nabard and Sidbi had agreed to be liberal in financing the powerloom sector to adopt the latest technology in the face of global competition.

With the Gatt agreement on textile sector having come into force from January, it has become essential for the powerloom sector in the country to modernise to meet global competition.

The meeting, which was attended by industry officials from Karnataka, Maharastra, Gujarat, Tamil Nadu, Assam, the Union textile ministry, representatives of the board and the planning commission, discussed the problems facing the sector.

 

Jalappa said he had asked the board members to devote greater attention to developmental aspects in the sector. He said the Centre was planning to provide housing loans and subsidy to powerloom weavers to own a working place with required amenities.

The present units are in a pathetic state and pose health hazards to weavers, he said.

Jalappa said the insurance scheme introduced by the Centre for the benefit of weavers had not been implemented by several states. States like Gujarat, Maharastra and Tamil Nadu, which account for major textile production had not launched the scheme, he said.

Jalappa said that while the Maharastra representative said his state would study the scheme and implement it, the Tamil Nadu official promised to implement the scheme this year.

The minister said an official from Gujarat pleaded ignorance about the scheme.

The Centre contributes 40 per cent as its share to the insurance scheme and the same is expected of the states. The remaining 20 per cent comes from beneficiaries.

Regarding the working of the National Textile Corporation (NTC) Mills, he said the accumulated losses had soared to Rs 4,670 crore and the government was working on a voluntary retirement scheme (VRS) to shed excess labour.

He said about 40,000 labourers in various NTC mills were drawing a salary without any work.

Some of the mills which could not be revived would be shut, Jalappa said. Efforts were on to get planning commission sanction to set up a fashion technology institute in Karnataka, he added.