Since technological upgradation involved replacement of outdated plants with modern ones, he said, reducing the duty on imported machinery was under active consideration of the centre. He said providing some sort of rebate or concession to processing industry by way of rationalisation of excise duty was also as important.

He said centre proposed to spend about Rs 3,000 crores as its share in the Rs 25,000 crore technological upgradation scheme, to be implemented with effect from April 1, 1999. It would also ensure back up from financial institutions like IDBI, IFCI and SIDBI, besides commercial banks.

Rana said that one of the major components of the scheme was to improve the quality of cotton cropd for which Rs 60 crores have beenearmarked. The bulk of cotton grwon in India suffered from contamination and dust.