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Cabinet approves TUFS amendment
30
Dec '15
In a boost to the textile sector, the Cabinet Committee on Economic Affairs has approved the introduction of "Amended Technology Upgradation Fund Scheme (ATUFS)" in place of the existing Revised Restructured Technology Upgradation Fund Scheme (RR-TUFS), for technology upgradation, with effect from the date of notification of the scheme, according to an official statement.

The amended scheme would give a boost to “Make in India” in the textiles sector. The Government expects it to attract investment to the tune of Rs one lakh cr and create over 30 lakh jobs.

The scheme specifically targets employment generation and export by encouraging apparel and garment industry, promotion of technical textiles, promoting conversion of existing looms to better technology looms for improvement in quality and productivity and encouraging better quality in processing industry and checking need for import of fabrics by the garment sector.

A budget provision of Rs.17,822 crore has been approved, of which Rs. 12,671 cr is for committed liabilities under the ongoing scheme, and Rs. 5,151 cr is for new cases under ATUFS.

All cases pending with the Office of Textile Commissioner which are complete in all respects, shall be provided assistance under the ongoing scheme and the new scheme will be given prospective effect.

Under the amended scheme, the Office of Textile Commissioner (TXC) is being reorganized and will be set up in each state. Officers of the TXC shall be closely associated with entrepreneurs for setting up the industry, including processing proposals under the new scheme, verifying assets created jointly with the bankers and maintaining close liaison with the State Government agencies.

The implementation of the scheme would be executed and monitored online under iTUFS, launched in April, 2015.

There will be two broad categories under the amended scheme.

The first category will be Apparel, Garment and Technical Textiles, where 15 per cent subsidy would be provided on capital investment, subject to a ceiling of Rs 30 cr for entrepreneurs over a period of five years.

The second category will be for the remaining sub-sectors which would be eligible for subsidy at a rate of 10 per cent, subject to a ceiling of Rs.20 cr on similar lines.

The Technology Upgradation Fund Scheme was introduced by the Government in 1999 to facilitate new and appropriate technology for making the textile industry globally competitive and to reduce the capital cost for the textile industry.

The scheme was earlier amended for continuation during the 12th Plan. (SH)

Fibre2Fashion News Desk - India

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