The government will set up aRs 100 crores venture capital fund to provide equity support to start-ups in the textile sector.The aim is to encourage innovative ideas in this export intensive sector. 

The Textile Equity Fund would be jointly set up with SIDBI Venture Capital. The centre will put in Rs 35 crores while SIDBI VC will pump in Rs 15 crores. While the Planning Commission says only start-ups in the power loom sector should be funded, the textile ministry as well as SIDBI is in favor of making all sub-sectors including power loom, weaving, spinning etc. eligible for such equity funding.

The textile sector contributes about 14 per cent to industrial production, 4 per cent to the GDP and 17 per cent to the country's export earnings. The sector is the second largest employment provider after agriculture. 

SIDBI Venture Capital was set up by Small Industries Development Bank of India in 1999. The aim is to catalyse entrepreneurship by providing capital and other strategic inputs for building businesses around growth opportunities and maximize returns on investment. 

www.sidbiventure.co.in/