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Kolkata , Sept. 2

THE Union Minister for Textiles, Mr Syed Shahnawaz Hussain, on Tuesday made a number of announcements for the jute industry such as an increase in capital subsidy, creation of an export promotion council and continuation of external marketing assistance. He was addressing members of the jute industry at a meeting organised by the Indian Jute Mills Association (IJMA).

The Government has decided to increase the capital subsidy for all new jute units — set up anywhere in the country — from 15 per cent to 20 per cent. "This is a part of the jute modernisation scheme. We have not restricted the scheme only to jute growing areas. The move is expected to give jute entrepreneurs a boost to set up new units," Mr Hussain said.

The Government has also decided to extend the External Marketing Assistance (EMA) for one more year. This assistance is given to jute exporters who are venturing out in the global market to find new customers and new usages for jute goods.

Meanwhile, the Ministry is also pressing the Planning Commission to clear the proposed Jute Technology Mission worth Rs 565 crore. "Mr K.C. Pant, the Deputy Chairman of the Planning Commission, is seriously looking into this matter," he said. The idea of a jute technology mission was first floated by Mr Kanshiram Rana, a former Union Textile Minister. This mission is expected to be similar to the cotton technology mission.

The Minister also announced that the Government was contemplating setting up a jute export promotion council. At present, Jute Manufactures Development Council (JMDC), a governmental organisation under the Union Textile Ministry, looks after the interests of jute exporters. The proposed new council is likely to be formed with jute exporters as members. JMDC may also become a member of this council. However, senior ministry officials hardly had any clue on what would be the functional difference between these two organisations.

Regarding captive power plants, Mr Hussain said mill owners would be given a free hand in setting up such units. A group of mill owners could jointly set up a captive power plant and distribute the power among themselves. JMDC already gives a 15 per cent capital subsidy for such units. The Minister urged the State Government to give similar sops to mill owners.

Reacting to this, a jute mill owner said it would provide a major boost to the sagging fortunes of the jute mills. "At present we are buying power at Rs 5 per unit but from a captive power plant the cost would come down to Rs 2.5 per unit," the mill owner said.

In his address, the Minister also touched upon the controversial mandatory packaging order. It may be noted that Calcutta High Court has rejected the Union Government's decision on the dilution of the order. Subsequently, the Textile Ministry submitted a special leave petition but it has been vacated too.

At present, the mandatory packaging orders stand at 100 per cent for foodgrains and 90 per cent for sugar. A senior official, however, said that Government has moved the Supreme Court on this issue and its petition has been admitted by the apex court.

Mr G.M. Singhvi, IJMA Chairman, urged the Minister to promote the use of geo-textiles mostly in the road construction sector. He felt that specifications should be set by the Union Textile Ministry. Reacting to it, Mr Hussain said, dialogues have been initiated with the Rural Development Ministry for using geo-textiles in rural roads and in the on-going Golden Quadrangle project.

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