The Textile Ministry has sought a 20 per cent increase in the budgetary allocation for 2010-11 over the current financial year allocation of Rs 4,500 crore, a top government official said.
"In the current year the budget allocation is over Rs 4,500 crore. We are looking for an increase over that... We have already pushed for a 20 per cent increase. Let us see what we get," Textiles Secretary Rita Menon told reporters on the sidelines of a function here today.
The enhanced allocation was aimed at a better growth of the sector, Menon said.
She expressed hope that the government would continue with the stimulus package for the revival of the textiles sector in the next fiscal.
"We have got sufficient feedback from the concerned people (authorities) that there will be no roll-back of the stimulus package," she said.
Stating that the sale of mills assets was need-based and the government had not fixed any time-line for their auction, Menon said that the National Textiles Corporation (NTC) was looking at realising maximum funds through the auction proceeds.
The government-owned National Textiles Corporation (NTC) expects to raise Rs 4,000-crore from sale of its assets in Mumbai, Kanpur and Indore.
NTC has already sold land of five mills in Mumbai.
The Textile Secretary said that the Corporation was looking to form more joint ventures with private textile companies.
NTC is modernising 24 mills on its own while 16 mills are to be revived through joint ventures, she said.
The corporation is currently modernising four mills in Mumbai with joint venture partners, among which is Alok Industries, Menon added.
As a part of its modernisation plan, the company s three units -- Tata Mills, Podar Mills and Indu Mills No 5 -- were today made operational after modernisation at an investment of Rs 150-crore.
These mills employ over 2,500 workers and would carry out spinning and weaving operations with an annual production of 10-12-million kg of yarn and 14-million tonnes of cloth.
