New Delhi May 11

The textile sector is likely to attract investment of Rs 1,50,600 crore by 2012 and would generate employment opportunities for 17.35 million workforce, out of which 5.2 million would be skilled, the Union Textile Minister, Mr Shankersingh Vagehla, said on Friday.

Presiding over the Consultative Committee attached to his Ministry, Mr Vagehla said that investment in the textile sector had picked up pace and it was reckoned that aggregate investment in the country's textiles and clothing sector was around Rs 72,452 crore between 2003-07.

He said the growth of the industry is now at 9 to 10 per cent per annum and it is likely to rise to 16 per cent in the coming years. Textile exports are likely to grow 22 per cent to reach $55 billion by the end of the Eleventh Plan period.

Integrated parks

Referring to the Scheme for Integrated Textile Parks (SITP) launched in 2005, Mr Vaghela said that 30 such SITPs would be set up by 2008 with an investment of Rs 15,700 crore. These parks would pan-out an annual production of Rs 23,600 crore and create half a million new jobs. The allocation for the scheme has been enhanced from Rs 189 crore in 2006-07 to Rs 425 crore this year.

Members were also apprised of the extension of the Technology Upgradation Fund Scheme (TUFS) till 2012. The allocation on account of interest support was increased from Rs 485 crore to Rs 535 crore in 2006-07, registering an increase of 10 per cent. For the current fiscal, Rs 911 crore has been provided for interest subsidy under TUFS, the Minister said.

Taken from Business Line

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