Imphal, February 05: The Japanese funded Sericulture Project which was suspended by the Union Ministry of Textile last year on the ground that the funds released for the project have fallen in the hands of militants, is set to a revival and the project is likely to start work this month.

Though 2005 was stipulated year to finalise the project, the deadline may be extended to 2007 if needed.

Disclosing this to The Sangai Express a top ranking official of the Sericulture Department said that timely work of the project could not be started due to the series of disturbances the State witnessed since 2001.Manipur was chosen as the State to go ahead with the Sericulture Project and an agreement to this effect was signed between the Union Ministry of Textiles and the Japan Bank of International Co-operation in 1998.The series of upheavals and social problems that the State witnessed during the last few years led to the inordinate delay in finalising the project and the suspension of the same by the Ministry of Textile last year only added to the delay.

The official said that prior to the suspension of the project, a meeting between officials of the Textile Ministry, Central Silk Board and officials of the State Sericulture Department was held at New Delhi last year.

During the meeting, the officials of the Textile Ministry and Central Silk Board raised the allegations that funds meant for the Project have fallen into the hands of militants and after some debates on the matter, the project was suspended, said the official.

Setting the record straight, the official said no fund has been siphoned off to the UG groups and added that there is also no case of fund misutilisation.

The Japan Bank of International Co-operation had earlier written twice or thrice to the Textile Ministry to lift the suspension as the period for doling out the loans was running out, disclosed the official.

The State Govt too had verbally as well as through written intimations asked the Textile Ministry to lift the suspension order for the project to take off again.

On January 27, the State Govt again wrote to the Textile Ministry to lift the suspension order.

Since the Textile Ministry has not been able to come up with any concrete evidences that funds for the project has fallen into the hands of the militants, the suspension of the project may be revoked anytime, now added the official.

So far mulberry trees have been planted in 780 acres of land and the amount spent till October 18 last year was Rs 63 crores, informed the official.

The estimated cost of the project is pegged at Rs 134 crores, said the official and added that at the time of suspending the project the number of farmers involved was over 2 thousand.

The targeted strength of the farmer is 4000.

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