Our Bureau

Coimbatore, March 1

The higher fund allocation of Rs 241 crore proposed for the handloom sector in the Budget is a positive development, though this amount may still be not sufficient compared to the handloom industry's potentials, according to Mr Sivakannan, former Chairman of the Handloom Export Promotion Council (HEPC).

Mr Sivakannan felt the introduction of an interest subsidy scheme for the handloom sector akin to the Technological Upgradation Fund Scheme now in operation for the textile industry is a welcome move. However, the demand from the handloom industry for suitable capital support for the industry in establishing textile processing projects with `0'discharge norm compliance has not found any mention in the budget. Since processing facility is a crucial segment in value-addition to the textile products produced by handloom segment, establishing `0' discharge facility would be costly for weavers.

(This article was published in the Business Line print edition dated March 2, 2006)
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