Of the four missions under the umbrella Cotton Technology Mission, this is the first mission for which the eligibility norms have been finalised by the government. The funds under the mission will be disbursed by the three designated financial institutions--Industrial Development Bank of India, Industrial Finance Corporation of India and the Industrial Credit and Investment Corporation of India.

These norms were finalised on February 18 at the office of the Cotton Corporation of India (CCI) under the chairmanship of the Textile Commissioner, BC Khatua.

The objective of the mission is to bring about total improvement in the ailing cotton processing activity in the country. This is aimed at upgradation and modernisation of the ginning and pressing units in this sector as well as utilisation of the by-products of cotton and its seeds. The mission, however, is expected to be operational by early next year.

The mission envisages to modernise around 250 units over the next five years at an estimated cost of around Rs 125 crore. The expenditure to be incurred by the government as incentive will be 25 per cent, or a maximum of Rs 12.50 lakh per unit.

This capital incentive of 25 per cent of the cost of modernisation of ginning and pressing factories will be shared by the Ministry of Textiles, Government of India and the concerned state government.

Under the norms, each of the eligible units will be allowed a maximum investment of Rs 50 lakh (inclusive of government's share of Rs 12.50 lakh) for upgradation/modernisation project.

The eligible factories needing larger amount for modernisation (machinery replacement) will be covered by the nodal agency separately under the umbrella Textile Upgradation Fund (TUF).

Further, only composite factories having both ginning and pressing facilities will be eligible for the funds under this mission. However, factories having only one of the facilities, but intending to diversify into other facility as well, will also receive funds under the mission.

Moreover, on the suggestion of one of the members of the mission belonging to the Maharashtra Cotton Growers' Federation (Mahafed), it was decided to accord priority to the factories under the co-operative sector.

The factories having capacity to process a minimum of 20,000 bales (of 170 kg each) per season will be considered eligible for the scheme. However, minimum bales criteria for factories dedicated to processing of extra length staple (ELS) will be 10,000 bales (ELS cotton includes DCH-3, Suvin and MCU-5).

Under the mission, the ailing units will be encouraged to go in for capacity expansion and thereby utilise the available funds under the mission. The meeting even discussed the root causes of contamination in cotton at the factory level and decided that thrust should be on improving the conditions in which cotton is handled.

The ideal ginning and pressing units should have minimum five pucca (preferably eight) platforms in an area of minimum 10,000 square feet (preferably 12,000) for heaping kapas (raw cotton). At least 50 per cent (preferably 100 per cent) of these platforms should be covered with special covered storage space for lint.

Four factors have been considered to be extremely important for reduction in contamination at various stages. These include pucca platforms for heaping cotton, establishment of conveyor belts for carrying heaps of raw cotton to the gin, from gin to Pala house, and Pala House to press. The pre-cleaners and post-cleaners are also given equal weightage.

The balance 75 per cent of the modernisation cost will have to be borne by the factory owners.