A committee headed by former textile secretary S Satyam is expected to submit the draft of the policy to the government in May. The policy seeks to eliminate disparities in the industry by setting the stage for integration of sectors with diverse interests.

"The policy will not see the light of day until a new government assumes power. Even the measures announced in the recent Exim policy are yet to be implemented," said Synthetic Rayon and Textile Export Promotion Council cahirman GK Gupta.

"The textile policy could get delayed, which would be unfortunate for the industry," said the Textile Export Promotion Council chairman DS Alwa said.

It is too early to make a comment on the policy as the political situation is still unclear. The committee, which held its last meeting on April 23, was giving finishing touches to the policy draft,said a Mumbai-based senior textile ministry official.

"The expert committee is working on the policy and the actual announcement may come through only after new the government is in place," the Indian Mill Owner's Association president Nandan Damani said.

The uncertainty has forced financial institutions (FIs) to go slow on disbursals from the textile modernisation fund, launched with much fanfare by former textile minister Kanshiram Rana in April.

The FIs seem to be going back on their commitment to clear the loans in three weeks. The companies which approached them for funds have not been getting an encouraging response, said an official of a leading textile firm on condition of anonymity.

Twenty-five days is too short to judge the implementation of the modernisation fund, which involves many procedural hassles. There was some confusion on the policy parameters for the powerloom sector, which was cleared recently. The fund, otherwise, will not be face any major problems, says a ministryofficial.

The modernisation fund will proceed as per plan, and it will take at least seven to eight months for the actual disbursal owing to the huge paperwork involved, says Damani.

The government recently appointed The Industrial Development Bank of India (IDBI), Industrial Finance Corporation of India (IFCI), and Sidbi as nodal agencies for the fund. While IDBI is the agency for composite mills, IFCI and Sidbi are the agemcies for the jute sector and small mills respectively.