A total of Rs 314.36 crore has been sanctioned to the capital intensive processing industry in these three hubs under the TUF scheme, which carries a subsidy of 5 per cent on the interest rate before 2000 end. The total amount sanctioned under the scheme to the various segments within the industry in the three states stands at Rs 1661.40 crore. Though the figures are cumulative from the day of launch of the scheme on April 1, 1999, applications started trickling in only after September '99. The number of applications under the scheme for investment in the processing sector itself is low. Incidentally, at a meeting held here on Friday, Union Minister of State for Textiles, Mr Dhananjaya Kumar, exhorted the powerloom industry to pursue value addition to face the challenges of a quota free regime ahead.

The grey fabric exports from the country is currently facing a tough time due to cheaper and better quality fabric coming from China.``The grey fabric exports are dropping sharply and realisations are poorer.

But the made-ups are doing well. We should start investing in value addition urgently. Processed fabric exports will improve the realisations,'' said Mr M Y Momin, Chairman of the Powerloom Development and Export Promotion Council (Pdexcil). Meanwhile, the National Institute of Fashion Technology (NIFT), Bangalore, has agreed to create a technical cell to help the powerloom industry in its value addition pursuits. Investment in units processing fibres, yarn, fabrics, garments and made-ups has to be made on a war-footing if the country has to achieve the ambitious export target of $50 billion set for 2010 in the National Textile Policy.