Textiles investment at 1.40 lakh crore, exports $40 bln by 2010

New Delhi, May 24 (UNI) Encouraged by a record investment inflow of over Rs 32,000 crore in textile sector and exports touching Rs 76,500 crore during 2005-06, the industry envisages an export target of about 40 billion US dollars by 2010.

However, the Textile Ministry is optimistic to achieve exports figure of 50 billion dollar and an investment to the tune of Rs 1,40,000 crore by 2010.

Highlighting his Ministry's performance in the last two years, Union Textiles Minister Shankersinh Vaghela told mediapersons here today that investments stood at Rs 2,938 crore in 2002-03, Rs 6.589 crore in 2003-04 and Rs 14,850 crore in 2004-05.

The textiles exports in 2005-06 stood at about 17 billion dollar (Rs 76,500 crore), up from 13 billion dollar (Rs 58,584 crore) in 2004-05.

The Government will soon establish a National Jute Board (NJB) by merging the Jute Manufactures Development Council (NMDC) and the National Centre for Jute Diversification (NCJD)to synchronise and synergise the integrated development of the jute sector as a whole, the Minister said.

The National Institute of National Fibres is being established and a National Jute and Jute Textiles Museum will be set up at Kolkata.

The Minister said that the Jute Technology Mission will be implemented at a cost of Rs 355 crore from 2006-07 to 2010-11 aimed at increasing the supply of quality raw material to the jute industry at reasonable prices and developing efficient market linkages for raw jute besides encouraging the production of Jute Diversified Products and Technology upgrading and modernising the Jute industry.

The Scheme for Integrated Textile Parks (SITP), he said, was launched in August 2005 to build 25 large textile parks of international standards by 2007 involving an investment flow of Rs 18,500 crore which were expected to create 5 lakh jobs. So far, nine parks have been sanctioned by the Ministry of Textiles.

Already, in a short span of 24 months, the textile sector has created about 20 lakh jobs and by 2010, another 120 lakh jobs will be created.

The subsidy on Technology Upgradation Fund Scheme (TUFS) has been increased to Rs 535 crore for 2006-07 from Rs 435 crore in 2005-06.

Mr Vaghela further said that a Technology Mission on Jute is set to be launched next year at a cost of Rs 2,000 crore to enable India to reach the top of the jute exporters' ladder.

Likewise, a Technology Mission on silk will be launched at a cost of Rs 2,000 crore and Technology Mission on wool will be luanched at a cost of Rs 90 crore. Both aim to modernise the sectors of silk and Wool and increase productivity.

The Minister also informed that to benefit handloom sector, the Mahatma Gandhi Bunkar Bima Yojana covering 2.41 lakh weavers and the Health Insurance Scheme benefiting 2.05 lakh weavers were launched.

Besides, 20 handloom clusters were developed all over the country at a cost of Rs 50 crore.

On the NTC front, a Group of Ministers has been set up to take quick decisions on turning around the mills, Mr Vaghela said that presently the National Textiles Corporation has been left with 52 viable mills. 22 mills have been identified for modernisation. It is proposed that 29 mills be revived through joint ventures. An India International Trade Tower (IITT) is proposed to be constructed on a mill land in Mumbai, he added.

The total cost of the rehabilitation scheme is Rs 5,67.56 crore, the waiver of interest will be to the tune of Rs 2,166.87 crore, the Minister said.

Mr Vaghela said that passing of the NIFT Act in Parliament earlier this week provides statutory status to the National Institute of Fashion Technology. NIFT will now be able to award degrees to students across the country.

UNI BBS PV KP1632