BUDGET 2000
SPECIALS
INTERVIEWS
COMMENTARY
GOVT&ECONOMY
Y2K: BIZ FEATURES
INDIA & THE WTO
CREDIT POLICY
BIZ IN THE USA
CARS & MOBIKES
MANAGEMENT
CASE STUDY
BIZ-QUIZ
USEFUL INFO
ARCHIVES
NEWSLINKS
SEARCH REDIFF

'New textile policy will boost exports'

Union Textiles Minister Kashiram Rana has said new textile policy aims to achieve an export target of $ 35 billion during the next five years.

Speaking to reporters on Friday after giving away the Texprocil awards at a function in Bombay, Rana said that driving force of the new policy, would be to make the textile sector take up the challenges of the new millennium and make it globally competitive.

The proposed three-pronged revival plan of about 119 National Textile Corporation, or NTC, mills is pending with the Union cabinet and a decision is expected soon, he said. Some of the mills would be modernised while the completely sick ones would be wound up and the voluntary retirement scheme on the Gujarat pattern implemented for the workers.

The ministry has already applied for Technology Upgradation Fund loans from the IDBI and SIDBI for the revival plan. The government has to pay Rs 5 billion as idle wages and suffers a cumulative loss of Rs 50 billion.

He also informed that the government had set up an estate value committee as suggested by the BIFR to get information about the estate value of NTC mills' surplus land.

Rana said all manufacturers should reflect upon the current level of modernisation in the textile industry and take necessary steps for setting up state-of-the-art processing units and export-oriented weaving units. The manufacturers should take advantage of the newly set up cotton technology mission which would address some of persistent problems of Indian cotton like low yields, contamination and poor quality of seeds.

Export of cotton textiles in the year 1999-2000 achieved a growth of 6.5 per cent over the previous year aggregating to $ 3.6 billion. The export of cotton yarn grew at a rate of 8.8 per cent and registered an impressive growth rate of 11.7 per cent. The targeted textile export for 2000-2001 is $ 15.5 billion.

Pointing out that India's share in world trade was a meagre 3.25 per cent, he said the need of the hour was pro-active measures to withstand competition from other supplying countries. Apart from technology upgradation, an improved work culture also was needed.

UNI

Business