“We are in the process of making a scheme for assistance to the paper industry," said department joint secretary Renu Sharma at an industry conference titled "Paperex 2009" here.
"This is to fight technological obsolesce, which is a major hindrance being faced by the paper industry," Sharma said.
According to her, the government was in the process of working out the quantum of subsidy on interest charged on bank loans to be given to the industry.
"This will come into effect some time in the next financial year," Sharma said.
Currently, only the textiles and jute sectors are eligible for concessional loan under the TUF scheme.
More than 400 delegates from India and abroad are participating in the three-day international conference that began here Sunday.
In his address, Central Pollution Control Board member-secretary J.S. Kamyotra asked the paper industry to upgrade technology for pulping, bleaching and odour control, and install chemical recovery systems.