After suspending the textile modernisation subsidy scheme for want of funds, the textiles ministry will soon approach the Cabinet Committee on Economic Affairs (CCEA) seeking additional resources for it.

The government had last month asked banks to suspend new sanctions under the technology upgradation fund scheme (TUFS) till new fund allocation is approved by the CCEA. The scheme has been kept under suspension as Rs 8,000 crore subsidy earmarked under the 11th Plan has already been disbursed.

"We want it (TUFS) to be expanded. We will be going to the Cabinet (CCEA) within three weeks," textile secretary Rita Menon said.

While banks and financial institutions have disbursed loans worth Rs 73,168 crore since TUFS began in 1999, the government subsidised 5 percent of interest reimbursements.