The Hindu Business Line : TN plans cluster-based loom upgradation

Under this scheme, weavers, master weavers and groups of weavers can opt for modernisation of looms by establishing a cluster of automatic or shuttle-less looms.

The minimum economic size will be six in the case of shuttle-less looms and 12 in the case of automatic looms, the Finance Minister, Mr C. Ponnaiyan, told the Assembly on Wednesday.

Financial aid will be facilitated from commercial banks and other financial institutions. As an incentive, the Government will provide back-ended interest subsidy at the rate of 5 per cent on term loans for small and medium enterprises that take up modernisation of their looms, he said, presenting the 2005-06 Budget.

Mr Ponnaiyan said modernisation of the power loom sector had to be taken up in the context of new market opportunities. The Centre's technology upgradation fund scheme had not resulted in the modernisation of the weaving segment in the State because of which antiquated semi-automatic and automatic looms were still widely prevalent. It is for this purpose that the Government is coming out with the scheme.

A taskforce chaired by the Development Commissioner was in dialogue with the industry on plans to promote growth in the textiles sector.

A textile processing park is planned near Cuddalore. The Government will establish a composite textile park at Karur at Rs 60 crore with assistance from the United Nations Industrial Development Organisation to provide modern facilities for weaving, stitching, designing and processing in one campus.

As an incentive to processing units that adopt clean technology, a scheme of interest subsidy of 5 per cent will be introduced. This subsidy will be available to small and medium enterprises and will be in addition to the capital subsidy that can be availed of from the Government of India.

Mr Ponnaiyan said, given the prospects of the textile industry, efforts would be intensified to link cotton growers with cotton consuming mills on a contract-farming basis.

On small and medium sectors, the Minister said two more women's industrial parks would be established in Madurai and Coimbatore and two techno parks for small and tiny entrepreneurs in semi-urban areas.

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