Interviews
ATUFS brings relief to textile sector: CMAI
02 Jan '16
2 min read
The Clothing Manufacturers Association of India (CMAI) has welcomed the Amended Technology Upgradation Fund Scheme (ATUFS) which was cleared by the Cabinet Committee on Economic Affairs on December 30, 2015.
In a Press Release, Shri Rahul Mehta, President, CMAI stated said the launching of the upgraded scheme in place of the present Revised Restructured TUFS (RR-TUFS) is a relief to the entire textile sector, especially because the RR-TUFS was in a limbo and no Unique ID, which is the formal sanction under the scheme, had been issued after September 2014.
Allocating nearly Rs.13,000 crore for clearing the Committed Liabilities will help in clearing the backlog pending for Issuance of UIDs and also the large number of so called 'left out cases' that have been pending for a decision for nearly 4 years, Mehta said.
Allocation of over Rs.5,000 crore for new projects will encourage fresh investments, both for modernising as well as scaling up existing production facilities and for green field investments.
Mehta thanked the Government for the extra focus provided to the highly labour intensive apparel segment and the technical textiles sector by stipulating a higher capital assistance of 15 per cent for them as against 10 per cent available to the other segments.
He pointed out that the apparel industry was not very capital Intensive, but given the sub-scale operation of production facilities in this segment in the country and the need to achieve economies of scale for competing with large units in countries like China, Bangladesh and Vietnam, the higher assistance to the apparel segment will prove to be highly beneficial in pushing up both employment and exports in the textiles sector.
Another textile industry body, the Apparel Export Promotion Council (AEPC) has also hailed the amended TUFS.
In a press release, AEPC Chairman Virender Uppal thanked the Government for amending the scheme.
“It will provide the much needed thrust for the expansion and growth,” he said. (SH)
In a Press Release, Shri Rahul Mehta, President, CMAI stated said the launching of the upgraded scheme in place of the present Revised Restructured TUFS (RR-TUFS) is a relief to the entire textile sector, especially because the RR-TUFS was in a limbo and no Unique ID, which is the formal sanction under the scheme, had been issued after September 2014.
Allocating nearly Rs.13,000 crore for clearing the Committed Liabilities will help in clearing the backlog pending for Issuance of UIDs and also the large number of so called 'left out cases' that have been pending for a decision for nearly 4 years, Mehta said.
Allocation of over Rs.5,000 crore for new projects will encourage fresh investments, both for modernising as well as scaling up existing production facilities and for green field investments.
Mehta thanked the Government for the extra focus provided to the highly labour intensive apparel segment and the technical textiles sector by stipulating a higher capital assistance of 15 per cent for them as against 10 per cent available to the other segments.
He pointed out that the apparel industry was not very capital Intensive, but given the sub-scale operation of production facilities in this segment in the country and the need to achieve economies of scale for competing with large units in countries like China, Bangladesh and Vietnam, the higher assistance to the apparel segment will prove to be highly beneficial in pushing up both employment and exports in the textiles sector.
Another textile industry body, the Apparel Export Promotion Council (AEPC) has also hailed the amended TUFS.
In a press release, AEPC Chairman Virender Uppal thanked the Government for amending the scheme.
“It will provide the much needed thrust for the expansion and growth,” he said. (SH)
Fibre2Fashion News Desk - India
Popular News
Leave your Comments
Editor’s Pick
Esteemed Clients
-Ltd..jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Thermore (Far East) Ltd.")
.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Telangana State Industrial Infrastructure Corporation Limited (TSllC Ltd)")
.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Taiwan Textile Federation (TTF)")
