TEXTILES
Hardly 20% of the textiles requirement of the state is met by local production, which comprises principally of the handloom and khadi sectors, the powerloom sector (which produces over 75% of the requirement nationally) not having been encouraged adequately in Kerala for fear of aggravating the already problematic traditional sectors. The Government desires to correct this policy on the lines of the Government of India’s Textile Policy with adequate safeguards to prevent massive redundancies in the handloom and khadi sectors.
(i) Powerlooms
Steps shall be taken for the phased introduction of powerlooms in the private sector by training the younger and capable traditional handloom weavers and providing loans / incentives to enable them to switch over to powerloom production as a household industry. Factory type handloom societies which opt to upgrade to powerlooms as well as new entrepreneurs will be encouraged to set up new powerloom units with adequate incentives. The products of the powerloom industry, especially those of the upgraded societies may be marketed on a wholesale basis by Kerala State Textile Federation (TEXFED) which will be strengthened to function as a development agency for the powerloom sector
(ii) Spinning Mills
The spinning mills of Kerala, especially those in the cooperative sector are unable to meet the price competition due to low productivity, high overheads, obsolete technology and inadequate funding for modernization and working capital requirements. The State Government shall, through the Department of Handloom & Textiles and TEXFED, enable units in the private and cooperative sectors to sustain themselves by offering technical advice and other services.
(iii) Weaving / Garment Units
The Government shall encourage, by a package of incentives and
support, new entrepreneurs who wish to start state-of-the-art textile/ garment
units of international quality as also existing industrialists who wish
to upgrade, modernize, add value or expand their activities, considering
the immense scope for domestic demand as well as the new opportunities for
exports following the lifting of the barriers and restrictions as per the
Multi Fibre Agreement by the end of 2004.
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