2013-14 BUDGET FOR TEXTILE INDUSTRY

TUFS: Technology Up gradation Fund Scheme for the textile sector in the 12th Plan with an investment target of `151,000 crore.The major focus would be on modernization of the powerloom sector. I propose to provide `2,400 crore in 2013-14 for the purpose.

Textile parks have been set up under Scheme for Integrated Textile Parks

(SITP). It is proposed to set up Apparel Parks within the SITPs to house apparel

Manufacturing units. To incentivize such Apparel Parks, proposeD to allocate`50 crore to the Ministry of Textiles to provide an additional grant of upto `10 crore to each Park.

Effluent Treatment plant: A new scheme with an outlay of `500 crore called the Integrated

Processing Development Scheme will be implemented in the 12th Plan to address

the environmental concerns of the textile industry, including improving the

effluent treatment infrastructure. I propose to provide `50 crore in 2013-14 for

the scheme.

Handloom sector is in distress. A very large proportion of handloom

weavers are women and belong mainly to the backward classes. I propose to

accept their demand for working capital and term loans at a concessional interest

of 6 percent. 150,000 individual weavers and 1,800 primary cooperative societies

will benefit in 2013-14. I propose to allocate an additional sum of `96 crore in

2013-14 to the Ministry of Textiles for interest subvention.

Traditional industries like Khadi, village industries and coir were taken up for development during the 11th Plan under the Scheme of Fund for Regeneration of Traditional Industries (SFURTI). The 12th Plan has Provided an outlay of `850 crore. propose to leverage assistance from Multilateral Development Banks to extend SFURTI to 800 clusters during the 12th Plan. 400,000 artisans are expected to be benefited.