"We have processed applications from 20-25 garment, processing and knitting units for assistance under TUF. The proposals, received till date since April 1, would be vetted by Sibdi board," the sources said.

TUF was launched on April 1 by the Government to help spinning, processing, weaving and knitting units besides the jute sector to help Indian textile industry face global competition, especially after the multi-fibre agreement under the auspices of World Trade Organisation (WTO) expires in 2004.

The Government will subsidise part of the interest payable under TUF, launched to dole at least Rs 25,000 crore as subsidised loan to the sector, and this is expected to cost the exchequer Rs3,000 crore.

Besides direct assistance, Sidbi would provide help in market development, sources said, adding the bank would conduct an awareness campaign to help the powerloom sector avail benefits from the scheme. Meanwhile, textiles secretary Shyamal Ghosh said that the textile industry was showing a "lot of interest" in TUF.

The textiles ministry had decided to hold seminars in major textile centres to create an awareness about TUF. "Textile associations will be involved in these seminars, while financial institutions have begun promotion work," he said. Stating that Sidbi had begun processing applications for assistance under the scheme, textiles secretary said the Industrial Development Bank of India (IDBI), the other major bank identified for extending loans under TUF, was expected to take a longer time in processing applications.

However, SR Sathyam, who is heading an expert committee to draft a new textile policy for the country, has lashed out at the rigid funding norms of financialinstitutions (FIs), which he said were limiting assistance to few players in the industry.

Financial institutions and banks were hesitant to provide assistance to the textile sector as they were "more worried about their external image than assisting the important area of the economy", he said at a textile meet. "The existing norms for funding by FIs are such that nine out of 10 proposals would not qualify for funding", he said in a bitter attack on the FIs lending norms.

But Sathyam has commended Sidbi and Nabard for their "exemplary" work in the textile sector.