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MNREGA benefit to be extended to sericulture workers

Updated: Oct 09, 2013 06:54:52pm
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New Delhi, Oct 9 (KNN)   Sericulture production is likely to increase by 10,000 tonnes by the end of the 12th Plan and to support sericulture workers, the government has decided to extend to them benefits of the Mahatma Gandhi National Rural Employment Guarantee Act (MNREGA).

“It was just yesterday that the Union Minister for Rural Development Jairam Ramesh had agreed to integrate sericulture workers, where the farmers are marginal and small scale with the benefits of Mahatma Gandhi National Rural Employment Guarantee Act (MNREGA),” said an official notification, quoting Union Minister of Textiles Kavuru Sambasiva Rao.

The Minister was speaking to the media after a conference of state ministers of textiles here today, when he told them that the Ministry had decided to increase the production in sericulture, from 23 thousand tonnes to 33 thousand by the end of 12th Plan. 

The production of yarn, he said was beyond the requirements of the nation.

Rao also said that the Technology Upgradation Fund Scheme (TUFS) has been notified. Earlier, in August this year, the Cabinet Committee on Economic Affairs gave its approval for continuing the TUFS during the 12th Plan period with a major focus on powerlooms in accordance with the Budget announcement for the financial year 2013-14.

A major feature of the Scheme is that to promote indigenous manufacturing of the textile machinery, Interest Reimbursement (IR) on second hand imported shuttleless looms shall be reduced from 5 per cent to 2 per cent.  

On the other hand, for new shuttleless looms capital subsidy would be raised from 10 per cent to 15 per cent, IR from 5 per cent to 6 per cent, Capital Subsidy from 10 per cent to 15 per cent and margin money subsidy from 20 per cent to 30 per cent with an increase in subsidy cap from Rs 1 crore to Rs 1.5 crore.

The Minister is also hopeful of getting a budget approved by the Finance Ministry to construct a warehousing facility, possibly in Uruguay so that handicraft exports can be doubled from 17,000 to 34,000 in less than three years.  The move is in response to requests made by handicraft exporters for a warehousing facility in one of the Latin American countries costing about Rs 100-200 crore which would be spent in about five years.

Skills training would be a focus area too.  The Ministry has informed private institutions and industries that they would provide finance for training at the rate of Rs 10,000 per trainee, an initiative that has been received well by the industry. 

In addition, Rao said that the Cotton Distribution Policy has been put before the cabinet.  (KNN/ES)

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