The Hindu Business Line : Modernisation scheme for TN ginners relaxed

THE Ministry of Textiles has recently relaxed the norms guiding the modernisation scheme for ginneries by lowering the number of gins that will be eligible for capital subsidy under the technology mission on cotton (TMC).

The revised guidelines now allows the 25 per cent capital subsidy for a ginnery going in for a minimum 12 double-roller gins; instead of the previous norm of a minimum 24 ginning machines.

The relaxation in the norms for the ginning industry modernisation propagated under the TMC has been effected in the wake of demands from small-scale ginneries in Tamil Nadu which were pleading for lowering the threshold limit of the number of ginning machines eligible for the capital subsidy under the modernisation scheme.

According to a press note from the TMC, a new ginnery with 12 double-roller gins set up under the modernisation scheme will be eligible for a subsidy up to Rs 22 lakh.

The revised guidelines, according to the TMC note, were explained at an informal meet of ginners from Tamil Nadu held here on Monday under the aegis of the Cotton Corporation of India (CCI), which implements the TMC's programmes.

The ginning industry in the State has periodically appealed to the TMC seeking relaxation in the modernisation scheme norms.It was explained at the meet that the ginning factory opting for modernisation should be a composite unit with 12 gins and has a bale pressing facility with matching production capacity. These units should also have facilities such as cleaning machinery for cotton, automatic conveyor for seed cotton, lint and seeds, besides storage infrastructure.

The modernisation projects for the ginneries would be approved only up to March 31, 2006.

The meet was attended by Mr Vishwanath, advisor to the CCI, and Dr K.R.K. Iyer, TMC consultant

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