The committee has been set up in view of the changes brought about by liberalisation, globalisation and steps taken by the World Trade Organisation and to prepare a comprehensive report that will be the basis for the new policy.

Sathyam said the committee would submit its recommendations on financial aspects by December end to enable the government to include them in the 1999-2000 budget. The other aspects will be covered in the final report to be submitted later.

He was surprised to learn that even banks were not aware of the scheme that allows small scale units to get loans if their associations stand bank guarantee. He apprised the meeting of the loan scheme floated by the Reserve Bank of India and appealed small weavers to benefit from it.

He asked opinions from industrialists on whether a regulatory authority would help. During a meeting with bankers on the first day of his visit, he asked for details of the loan they had given to units, but was surprised to learn that the bank authorities were in the dark.

Only technology upgradation or modernisation would not help solve the problems dogging the industry, he said, stressing the need for developing a model plan that will give the industry a direction.

Chairman of Federation of Indian Art Silk Weaving Industry and member of the expert committee Arun Jariwala hoped that the new policy would stem the rot of recession that has set in the industry and would have far reaching impact.