The government on Friday proposed a one-time grant of Rs. 200 crore for setting up effluent treatment plant at the Tirupur textiles cluster.

“I propose to provide a one-time grant of Rs. 200 crore to the government of Tamil Nadu towards the cost of installation of a zero degree discharge system at Tirupur to sustain this industry which provides livelihood to lakhs of persons without undermining the environment,” Finance Minister Pranab Mukherjee said while presenting Budget for 2010-11.

The effluents released from the units in the cluster are causing river pollution besides impacting the ground water.

Industry sources said the grant would be used for setting up a marine system to check the pollution caused by the units.

Tirupur is one of the major textiles hub of the country.