Setting Up of Jute Manufacturing Unit to Promote Jute

The government is trying to promote jute manufacturing units by 100% mandatory packaging of food grains procured by State Procurement Agencies/FCI in jute bags.

The production of jute goods over the last few years by the jute mills has remained consistent. During the year 2017-18 and 2018-19, approximately 1,200 Thousand MT of raw jute per year was consumed by the mills to meet the demand of jute producs.

Number of measures have been taken by the Government to modernise the jute mills established in the country, the details of which are as follows:

I. The Government has implemented Incentive Scheme for Acquisition of Plants and Machinery (ISAPM) to facilitate modernization in existing and new jute mills and for up-gradation of technology in existing jute mills. An incentive of 20% of the cost of machinery for jute mill and 30% for Jute Diversified Products (JDP) – MSME units is considered for reimbursement under the scheme, subject to a maximum of Rs 2.50 crore (US$ 0.36 million) per unit. Under this scheme, a subsidy amounting to Rs 49.71 crore (US$ 7.11 million) has been disbursed to Jute mills and JDP units during the period 2014-15 to 2018-19.

II. A Scheme for Research and Development for the textile industry including jute with a total outlay of Rs 80.00 crore (US$ 11.45 million) has been launched in 2015 by the Government for promotion of Research & Development, technology transfer and dissemination activities in textile sector including jute.

This information was given by the Union Minister of Textiles, Ms Smriti Zubin Irani, in written reply in the Rajya Sabha on 5th December.

Source: IBEF

Image Courtesy: TFE