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Govt announces package of incentives for jute industry
PTI - New Delhi

Government has announced a package of incentives for modernisation of the jute sector including an upfront subsidy of 15 per cent on machinery and equipment as well as extension of DEPB benefits to more jute items such as yarn, hessian cloth and sacking bags.

The package of incentives finalised by textiles minister, Mr Kashiram Rana includes an incentive scheme called the Jute Manufacturers Development Council (JMDC) Incentive Scheme for modernising the industry.

The incentive scheme will be operated by the council out of the cess levied and collected on the jute manufacturers.

The textiles minister had, while moving the Jute Manufacturers Cess Amendment Act 2002 in Parliament during the budget session, said that additional resources generated by the increase in cess will be utilised for the modernisation of the jute industry.

The scheme will come into effect from the date to be notified by the council and shall remain valid initially for a period of three years. The tenure of the scheme would, however, be subject to an annual review by the council.

Under the scheme, an upfront subsidy of 15 per cent of the capital cost of specific machinery and equipment would be given to all items of machinery identified under the Technology Upgradation Fund Scheme.

In addition, other items which are crucial to the modernisation of the jute industry identified by a committee presided over by the Jute Commissioner with representatives from government and industry would also be eligible for the same.