Calcutta, Sept. 2: Union textile minister Syed Shahnawaz Hussain has announced a 5 per cent increase in capital subsidy — from 15 per cent to 20 per cent — for the modernisation of jute mills.
The enhanced subsidy will be available to new jute goods manufacturing units as well. Hussain said this would help in expanding the industry beyond West Bengal.
Addressing an interactive session organised by the Indian Jute Mills Association (Ijma), Hussain said the textile ministry would form an export promotion council for the sector to concentrate on marketing jute products overseas. It would be functional from next month, he said.
Hussain assured that the government would also retain the order for 100 per cent use of jute sacks for packaging foodgrains and 90 per cent for sugar.