Textile Manufacturing units are being benefited by TUFS, Technology Up gradation Fund Scheme, according to which the Industry is entitled to access subsidy for growth and expansion in the sector along with modernization of plant and machinery, being an important objective. Ministry of textile administers the scheme as per their procedures.

Similarly, the proposal for subsidy grant to paper mill is being proposed by the department of Industrial policy and promotion. Basic objective behind this is to generate funds for purchasing capital equipment required for development of the industry. Aim is to provide aid of buying state of art equipment to the paper industry worth Rs 25,000crore for improving the productivity and efficiency of the industry.

According to the joint secretary DIPP, Renu Sharma, the proposal is still under processing and the benefits are likely to be finalized not before 2010 or may be somewhere near 2010-2011. It was stated at the seminar held in the honor of the proposal. The associated department of the industry is still in process of finalization of the subsidy quantum that government would be required to bear over loans allotted to the paper sector. More than 55, 00,000 people rely on this sector for employment directly or indirectly which means growth is the basic need of the industry.

Another important objective of the DIPP is to resolve the problem of raw material. One more proposal that is being worked over that contains emphasize on the permission to be granted for the growth of agro based raw material at the land in forest with proper compliance with the ecological balance. Most of inputs are being outsourced through social forest projects running by the state government.