The minister, who was here on a three-day visit as part of his tour to three north-eastern states, said that the old policy of 1985 was ``totally irrelevant''.

Rana said the response to the Rs 25,000 crore Technology Upgradation Fund (TUF) scheme for textiles, raised by the government in April last, was ``very enthusiastic'' and ``we feel by this scheme our target for generating more employment and foreign exchange would be achieved.''

A cotton technology mission of Rs 600 crore was being formulated with four-pronged purpose of improving the cotton quality, its yield and giving remunerated price for cotton growers, Rana said.

Referring to Sikkim, the minister, who was accompanied by the development commission of handloom, Arun Kumar Gupta, said the state was asked to form a handicraft and handloom corporation toavail various advantages of centrally-sponsored schemes.

Rana said the centre has sanctioned Rs 2 crore to Sikkim under the `Workshed and Housing Scheme', in 1998-99 for enhancing the weavers' efficiency.

Under it, the weavers would construct a separate room for their looms to raise their production figure. Weavers of Kerala had increased at leat 40-45 per cent efficiency by this method, Gupta said.

The commissioner said Sikkim has not so far implemented the `Project Package Scheme' for which the union government has disbursed Rs 30.35 crore for the country in 1998-99.

The minister said he has suggested the state's officials and the Chief Minister during his meeting with them to start short duration computer-aided designing course to open a vista of new fashions to the carpet-weavers and the craftsmen of Sikkim.

The carpets from Sikkim, which were believed to have not found adequate market, can be arranged to sell abroad, Gupta assured.