Rs 1,295 cr package recommeneded for handloom sector

NEW DELHI: A high-level committee set up by the government to look into the problems plaguing the country's handloom sector has recommended a Rs 1,295-crore financial package to help the sector.

"The total financial package recommended by the committee is estimated to be Rs 1,295 crore, of which the Central government's share would be Rs 1,155 crore, state government's contribution would be Rs 130 crore while that by Nabard would be Rs 10 crore," Minister of State for Textiles E V K S Elangovan said in a written reply to the Lok Sabha.

The committee, headed by Managing Director of National Bank for Agriculture and Rural Development (NABARD), was formed to look into the problems of high cost of working capital and choking of credit lines in the handloom sector.
In a separate reply he said Rs 350 crore have been allocated for the handloom and powerloom sector in 2008-09, up from Rs 325 crore allocated in 2007-08.

Replying to a question, Textile Minister Shankersinh Vaghela said Jute Corporation of India had an unsold jute stock of 3.2 lakh quintals in 2007-08.