Indian govt releases Rs. 577mn subsidy for jute mills

August 27, 2012 - India

Smt. Panabaaka Lakshmi, Minister of State in the Ministry Of Textiles, has informed that there are 83 composite jute mills in the country. Out of the total 83 jute mills, 64 jute mills are located in West Bengal, 3 each in Bihar and U.P., 7 in Andhra Pradesh, 2 each in Assam and Orissa, 1 each in Tripura and Chhattisgarh.  State-wise data about production and export of jute bags is not readily available and shall be laid on the table of the house in due course of time.

During the last year, the average price of jute bags has shown a decline with respect to the previous two years when there was a substantial increase over earlier years.  This trend, however, is in sync with the Government price for the jute bags procured through the Directorate General of Supplies & Disposals (DGS&D).

Out of 83 composite jute mills, 6 mills  are under Government of India’s Public Sector Undertaking, 1 mill (Tripura) is under State Government,  2 mills (Assam  Co-op. & New Central) are in the co-operative sector and 74 are privately owned mills. As per the decision of Cabinet Committee on Economic Affairs, out of the six Government jute mills, three are to be modernised. 

The process of modernisation has been initiated. The onus of modernisation of private mills is on their respective owners.  However, under the Jute Technology Mission, subsidy is given to the jute mills/jute units for modernisation and upgradation. 

The upper limit of subsidy is Rs. 3.50 croreper jute mills for the existing units and Rs.4.00crore for mills at North Eastern States and for setting up new units.  As on 31st March, 2012, a subsidy of Rs.57.71 crore has been released against investment for modernisation of Rs.283.06 crore.