CCEA to take up continuation of powerloom cluster development

NEW DELHI: To promote the textiles sector, the government may consider a proposal for continuation of comprehensive powerloom cluster development scheme in the 12th Plan period.

"The Cabinet Committee on Economic Affairs (CCEA) would take up the proposal for continuation of comprehensive powerloom cluster development scheme in the 12th Plan," sources said.

The objective of the scheme is to create a worldclass infrastructure to assist entrepreneurs to set up their units with modern infrastructure, latest technology and adequate training and human resource development inputs along with appropriate market linkages.

The funding is likely to be in the ratio of 40:60; wherein the government grants per cluster may constitute a maximum of 40 per cent (with a ceiling of Rs 70 crore each cluster) and the balance 60 per cent shall be raised by SPV through various stakeholders. The contribution of 60 per cent by SPV also includes the cost of land, sources said.

Further, they said, the government may also consider the proposal for modification of guidelines of scheme for development of powerloom mega cluster at Ichalkaranji in Maharashtra.

The Textiles Ministry has been running this scheme with an aim to strengthen, modernise and expand the market base of the powerloom sector.

This sector plays an important role in the textiles economy in terms of fabric production and employment generation. As on March 31, 2011, there were about 5.18 lakh powerloom units with 22.92 lakh powerlooms.

To promote silk sector, the CCEA may also take up the issue of modification in revival, reforming and restructuring package for handloom and institutional credit component of integrated handloom development and their merger into National handloom development programme.