New Delhi, Jul 31 (KNN) With a view to boosting the powerloom sector, the government has allocated Rs 11,952 crore under the Revised Restructured Technology Upgradation Fund Scheme (RR-TUFS); raised interest reimbursement and capital subsidy for new shuttleless looms; and increased margin money subsidy etc.

"Capital subsidy has been increased from 25 per cent to 30 per cent for handloom and silk sector, margin money subsidy cap is increased from Rs 45 lakh to Rs 75 lakh for MSME and jute sector," Textiles Minister, Santosh Kumar Gangwar informed Parliament. 

He said that interest reimbursement and capital subsidy for new shuttleless looms have been raised from five per cent to six per cent and 10 per cent to 15 per cent respectively. 

The margin money subsidy has also been increased from 20 per cent to 30 per cent with an increase in subsidy cap from Rs 1 crore to Rs 1.5 crore, he said. 

Gangwar also said that a pilot project has been envisaged under the powerloom sector which aims at providing subsidy for developing infrastructure, common facilities, construction of factory buildings and for shuttleless looms on hire purchase basis to improve their quality and production and to face competition from the domestic market as well as export market. 

Gangwar said the scheme has been evaluated thrice in 2003, 2006 and 2010 and all evaluations found the scheme beneficial for the textile industry and recommended its continuation. 

"These evaluations have found improvement in quality, turn over productivity, profitability, exports etc and a decline in cost, wastage, maintenance and labour costs etc," he said.  (KNN/SD)