Textiles ministry has suggested extension of subsidy scheme for upgradation of powerlooms in the country to improve quality of powerloom products, a top official said on Monday.

Moreover, the ministry has also sought the removal of restrictions on the number of units eligible for receiving these benefits, Kiran Soni Gupta, Textile Commissioner said.

“We want to give the benefit across the board to improve the quality of the product and also to remove restrictions,” Gupta said at a programme organised to distribute subsidy under the in situ upgradation of plain powerlooms here.

At present only a maximum of eight powerlooms can receive a subsidy of Rs 15,000 each under the scheme, which is also available only in select weaving clusters, like Erode and Salem, she said.

Stating that the idea was to help poor weavers, Gupta said Indian textile industry can make a difference on the global stage only if weaving was able to contribute significantly to its growth.

Of the over 20 lakh looms, only 1.25 lakh were fully mechanised, she said. Since 95 per cent of the textile machinery was being imported, there were a lot of opportunities for entrepreneurs and the demand for looms can be met by the domestic players, Gupta said.

The ministry has sought additional funds for Technology Upgradation Fund Scheme, as the allocated money has already been utilised, she said.

The ministry has received 10 proposals from this city for setting up yarn banks of which two have been approved. Yarn banks have already been launched in Surat in Gujarat,Gupta said.

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