The chairman of the Indian Jute Mills' Association, (IJMA) Sanjay Kajaria, told PTI that under the TUF scheme, launched on April 1, 1999, funds were available at five per cent interest for importing machineries which are not more than five years old in technology and has a minimum residual life of 10 years.

``But there are no machines available in the market which were upgraded in the last five years,'' Kajaria said.

Since the government has declared that the scheme will not entertain applications for import of old versions of machineries, no jute manufacturer has applied for the TUF. Neither they will be able to apply if the modalities are not changed, he said.

So far the three nodal agencies for TUF, IDBI, IFCI and SIDBI have received77 applications with a loan amount of Rs 2,500 crore with none of the applicants being from the jute sector.

``The jute manufacturers cannot avail the scheme as the conditions laid down by government does not allow the industry to apply for the loans,'' Kajaria said.

The five-year scheme, which expects a loan demand for about Rs 25,000 crore, however, got a favourable response from the cotton and textiles sector.

Asked why there was no new technology available in jute sector, IJMA sources said development of upgraded machineries was not viable in view of the losing share of the commodity in international market.

``Interestingly, the jute industry could not avail of the earlier scheme launched by the former prime minister, Rajiv Gandhi, also,'' the sources said.

``The Rs 250 crore twin package of special jute development fund and the jute modernisation fund scheme, launched in 1986 had laid down similar stringent conditions which the mills could not fulfill,'' they said.

The industry, which had a16 per cent fall in production and about 100 per cent fall in exports last year, has made representations to the government for concessions in the current scheme, but to no effect, the sources said.

The government rather demolished the compulsory 50 per cent quota for jute packaging in cement industry, thus encouraging the use of plastic as a substitute, they said.