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Four years on, government issues guidelines for Dalit industrialists

With only eight months left for implementation, it's not clear how state plans to help uplift the community is unclear

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In what can be called as a test case of "red-tapism", Maharashtra government on Monday issued "detailed guidelines" of a policy rolled out in March 2012 to support minorities and Dalits industrialists.

Through the set of guidelines, the government has described the very definition of the term "modernisation" and machinery to be considered as "modern" under the scheme.

"Modernisation of existing power-looms means induction of state-of-the-art or near-state-of-the art technology in place of existing technology/machinery or at least a significant step up from the present technology level to a substantially higher one for such trailing segments would be essential," reads the order issued by the cooperative, marketing and textile department.

For machinery part, the order refers to a list of spinning, ginning, weaving, processing machines declared by the Centre.

Interestingly, the definition and the machine specifications, both are borrowed from the Centre's definitions existing since 2012 described in the "TUFS" (Technology Upgradation Fund scheme), a subsidy policy of the Textile ministry of India.

The state's scheme aims to offer 10% capital subsidy to the textile mills belonging to tribals, Dalits and minorities provided that 80% of the share-holding of the company are with the members of that particular community. The scheme doesn't stipulate any cap on investment.

The policy was announced soon after the launch of "New Textile Policy of Maharashtra 2012-17" and has the validity till March 2017. In just eight months, how government plans to help the mills and uplift the community is unclear.

Tribal, social justice and minorities development departments were expected to pool funds for the scheme. A highly placed official said, "Despite or because of involvement of four departments, things didn't move beyond announcement," admitted a highly placed official.

Textile is the second-largest employer in India and in Maharashtra after agriculture. There are about 25 lakh power looms in India. Maharashtra has over 50% of this operating in Bhiwandi, Malegaon, Ichalkaranji, Sholapur, Nagpur and other textile clusters.

Despite Union and state government releasing a huge amount for modernization, so far the country has been able to install just two lakh modern and shuttle-less looms.

Capital subsidy for self-finance projects

In December last year, the Maharashtra government for the first time has announced capital subsidy for the upcoming self-financed projects in the state. Earlier, the government's capital subsidy was credit-linked and was subject to the loan taken from the bank. The state government also offers 10% additional subsidy for the textiles mills in North Maharashtra, Marathwada and Vidarbha.

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