Industry And Cluster | News & Insights

Textile Sector in Assam

Published: July 30, 2019
Author: TEXTILE VALUE CHAIN

The Office of Textile Commissioner has been providing subsidy under the Amended Technology Upgradation Fund Scheme (A-TUFS) to the investors (including the State of Assam) and is also processing new proposals for availing subsidy for upgradation of machines from the investors.

In the Mega Handloom Cluster at Sivasagar in the State of Assam, private investments are encouraged in projects which are sanctioned in the PPP mode in 80:20 ratio, wherein Government provides 80% funding and 20% funding is done by the investor, i.e. Special Purpose Vehicle (SPV), which also provides the land for the project. Since 2017, Govt. of India has released Rs. 6.91 crores for such projects in Assam with the investor participation at Rs. 1.91 Crores. The Office of Development Commissioner (Handicrafts) has taken up 39 clusters under AmbedkarHastshilpVikasYojna (AHVY) for the overall development of artisans in Assam which has benefitted 4970 artisans during the last two years.

Following two composite jute mills are enlisted in the State of Assam:

S. No. Name of the Jute Mill Address of the Mill
1 Assam Co-operative Jute Mills Ltd. P.O. Silighat-782143, District- Nagaon, Assam
2 Atlanta Modular Pvt. Ltd. NH-37, BihandNezone Tubes, West Boragaon, Guwahati, Assam.

Under North East Region Textile Promotion Scheme (NERTPS), a proposal to establish two Eri Spun Silk Mills in Assam and Bodoland Territorial Council (BTC) under Government Sector has been approved during 2018-19. The Government has set up a Board for Industrial & Financial Reconstruction (BIFR) under Sick Industrial Companies (Special Provisions) Act with a view to timely detect sick and potentially sick companies and for taking remedial measures.

Under NERTPS Govt. of India, through Central Silk Board have taken measures to increase silk production in Assam by implementing sericulture projects in four categories viz., Integrated Sericulture Development Project (ISDP) and Intensive Bivoltine Sericulture Development Project (IBSDP), Eri Spun Silk Mills (ESSM) and Aspirational District (AD).  The details of funds sectioned and released is given below:

[Rs. in crore]

Project Name Project Cost GoI share Funds released Till June-19
ISDP 186.99 153.17 113.06
IBSDP 59.61 53.03 50.37
ESSP 43.06 38.18
AD 41.31 38.19
Total 330.96 282.56 163.43

A Regional office at Guwahati is functioning to monitor the Central Sector schemes and to address the issues related to development of sericulture in NE region in association with the all NE States.

As on date, no proposal to grant special packages to the Assam Cooperative Jute Mills Ltd., Silghat, Nagaon (Assam) is under consideration. However, preferential treatment is given in allocation of Production cum Supply Orders (PCSOs) as per its capacity under the Jute Packaging Materials (Compulsory Use in Packing Commodities) [JPM Act], 1987 because of its disadvantageous geographical location and limited options for local markets.

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