"It has been decided that 15 mills should be modernized at the cost of Rs 318.83 core and modernisation of other mills may be attempted through strategic private partner," Shankersinh Vaghela, Textiles Minister told the Rajya Sabha.
He said that the delay in surplus assets was due to want of permission from state governments. Moreover, sufficient resources could not be mobilised for moderanisation of all 53 mills.
Vahgela said after the liberalisation of global trade in textiles, India's exports in 2005-06 are expected to cross $15 billion.
He admitted that by granting drawback on the basis of weight, as is being done from January, will reduce admissibility of drawback for finer variety of textiles and increase it for coarser verities.
The minister said that five exporters have been banned from exporting to the US for quota fraud.
"They have been temporarily debarred from exporting under Textile Quota Policy. The Enforcement Committee has requested further clarifications on the fraud from US authorities, pending which the debarment order will remain in force," he said, adding that reference has been made to the Central Bureau of Investigation for detailed inquiry in to the whole affair.