- The textile industry of the state has sought changes in the prevailing system of giving interest subsidy to the textile firms and demanded the Central government to pass it on directly to their bank accounts.
- In the existing system, first, banks sanction the loan at the prevailing interest rate of 12-13% which is followed by reimbursement of interest subsidy by the textile commissioner.
- The existing process is time-consuming and delays the fund flow to the sector.
- As per the scheme, the textile commissioner provides 4% interest subsidy to the textile firms, which aspire to set up new spinning mills and 5%, when it comes to new weaving and technical textile units.
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