• Investment World
• eWorld
• Catalyst
• Mentor
• Life
• Canvas
• Praxis
• Urban Pulse
• Brand Quest

Stocks

• Quotes
• SE Diary
• Scoreboard
• Open-End Mutual Fund

Port Info

• Ships in Ports
  
  

Archives

• Yesterday
• Datewise
• Resources

Group Sites

• The Hindu
• Business Line
• The Sportstar
• Frontline
• The Hindu eBooks
• The Hindu Images

G Gurumurthy

Coimbatore , May 20

WHILE subsidies earmarked are generally meant to be quickly used up, not all sectors of industry show the appetite to devour them at one go.

The decentralised powerloom industry is perhaps one industry credited with the distinction of leaving a major chunk of subsidy allocation unutilised, forcing the office of the textile commissioner administering the subsidy scheme returning the amount to the Government.

According to Dr H.S. Das, Additional Textile Commissioner, during 2004-05, Rs 25 crore was earmarked as the upfront capital subsidy of 20 per cent for the decentralised powerloom weavers availing themselves of loom modernisation under the credit-linked capital subsidy (CLCS) scheme introduced by the Centre in 2003-04.

But hardly Rs 5.90 crore was distributed in 2004-05 and according to the official, not many in the sector availed themselves of the CLCS route . His office had to return Rs 19 crore that remained unused.

However, Dr Das said that the momentum this year had picked up for the CLCS projects and within one-and-half months of the current fiscal, his office had already disbursed Rs 1.2 crore as capital subsidy for the powerloom project and disbursement of another Rs 60 lakh or so was in the pipeline.

Dr Das said that for 2005-06 the Centre has allocated Rs 10 crore as subsidy under the CLCS scheme and considering the momentum on the powerloom modernisation front, he anticipates the total subsidy outgo this fiscal to be Rs 20 crore.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
High tide, swell waves cause panic in coastal Kerala

Copyright © 2005, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line