Home / Knowledge / News / Textiles / Capital Subsidy under Jute Technology Mission
Capital Subsidy under Jute Technology Mission
Jan '10
The Cabinet Committee on Economic Affairs approved a proposal of the Ministry of Textiles to raise the cap on the subsidy prescribed in the scheme component Acquisition of Plant & Machinery (Capital Subsidy) under Jute Technology Mission.

The cap on subsidy under the scheme has now been enhanced to Rs.3.5 crore per mill in respect of existing mills in general states and to Rs.4 crore per mill in respect of new mills and existing mills in the North East. This is expected to provide the much needed thrust and incentive to the jute industry to invest in modernisation on a significant scale.

The Jute Technology Mission was launched by the Government for the holistic development of the jute sector and is being implemented during the XI Five Year Plan.

Under this scheme there is an outlay of Rs.80 crore which is to be provided as capital subsidy @20% of the cost of identified machinery and plant. This component aims at enhancement of productivity in the jute industry by technological upgradation of existing machinery to suit modern production practices. Under this scheme the ceiling on subsidy was Rs. 75 lakh per unit for existing units which could be enhanced to Rs. one crore for new mills and for units in North East.

This cap on the subsidy resulted in poor off-take under the scheme thereby defeating the very purpose of the scheme which was modernization and technological upgradation of jute industry. The jute industry also had been claiming that the cap on subsidy of Rs. 75 lakh/ one crore per unit is not sufficient to bridge the viability gap for making the investment.

Based on a techno-financial viability study it was worked out that subsidy cap of Rs.3.5 crore would mean 100% viability gap funding for mills having capacity of 70 TPD or lower. The mills with larger capacity would be able to carry out partial modernization or alternatively avail benefits under TUFS, the flagship scheme of Ministry of Textiles, under which there is no cap on subsidy that can be availed.

Press Information Bureau

Must ReadView All

Apparel/Garments | On 26th Oct 2016

SGS develops 4C chemical management model for apparel

SGS, a leading inspection, auditing, certification, testing, and...

Textiles | On 26th Oct 2016

Whitehouse & URI Business Centre start RI textile network

Senator Sheldon Whitehouse and the University of Rhode Island...

Textiles | On 25th Oct 2016

Arvind to dilute 10% stake in brand business arm

Arvind Limited, one of India’s largest integrated textile and apparel ...

Interviews View All

Riddhika Shah
SS Homme

'Worsted wool is the ideal fabric for menswear'

Nuno Venda

‘There has been an increase in demand for water based inks, rather than...

Manfred Mentges
Sedo Treepoint GmbH

We see a higher demand in colour management systems, as customers see big...

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Kai Poehler
Voith Paper GmbH & Co. KG

The glass mat industry is growing by five to eight per cent annually. Kai...

Eric Scholler

The Indian market has huge potential in technical textiles, and by far,...

Robert Brunner

Golfwear and menswear brand Devereux is set for greener pastures. Robert...

Ritu Kumar
Label Ritu Kumar

‘Classics will return’ "There are a lot of people wearing western clothes ...

Wendell Rodricks
Wendell Rodricks

"We should not compare India and the West. There are things we do that...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies

October 2016

October 2016

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.


Browse Our Archives


Advanced Search