The Hindu Business Line : Subsidy release assured to SSI powerloom weavers

WITH the Centre evolving a suitable procedure, securing the 20 per cent capital subsidy allowed for small-scale powerloom weavers investing in new machinery has now become easier.

The weavers who had availed themselves of the subsidy scheme and installed the new machinery and whose machinery suppliers are awaiting the release of the subsidy amount would soon receive the payment from the Centre.

This assurance was given by the Textile Commissioner, Mr Subodh Kumar, during his interaction with members of the powerloom industry at a seminar on hi-tech weaving parks.

Reacting to complaints aired by a section of the powerloom weavers at the seminar on the delay in releasing the subsidy amount, the Commissioner said the 20 per cent special subsidy scheme for the SSI powerloom weavers was itself framed only last December and it was natural that it took some time for the Centre to put in place the procedure for subsidy reimbursement. With the Finance Ministry clearing the procedure, Mr Kumar does not anticipate any hurdles in getting the subsidy released to the beneficiaries.

The improved technology upgradation fund scheme for small-scale powerloom operators was introduced by the Textile Ministry envisaging payment of 20 per cent capital subsidy upfront for investment in pre-weaving and weaving machinery eligible to be funded under TUFS. The total investment ceiling for a loan account under this is, however, limited to Rs 60 lakh and the release of the 20 per cent subsidy would be made directly to the machinery manufacturers and not to the persons who avail themselves of the bank credit for investment on new machinery.

It is estimated that since the introduction of the 20 per cent upfront capital subsidy, the subsidy pending on Rs 50-crore machinery availed of under the scheme is said to be around Rs 12 crore.