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Government initiates action for cashless transactions
19
Dec '16
Government has initiated immediate action to enable cashless transactions for payment of wages in the textile sector to address the issues of shortage of new currency, said Union textiles minister Smriti Irani. A campaign has been launched to promote digital payments and opening of bank accounts for workers by organising camps in various textile clusters.

Senior officers were deputed to clusters to oversee the holding of camps in association with the banking sector. Industry Associations and Councils have also been advised to promote digital payments for enabling cashless transactions, said Irani in a written reply to Rajya Sabha.

The government has approved Amended Technology Upgradation Fund Scheme (ATUFS) instead of Revised Restructured Technology Upgradation Fund Scheme (RRTUFS), she said in another reply to Rajya Sabha. ATUFS is for technology upgradation of the textile industry with one time capital subsidy for eligible benchmarked machinery for seven years from 2015-16 to 2021-22.

The rate of capital investment subsidy (CIS) for garmenting, technical textiles and composite units (if the eligible capital investment in respect of garmenting and technical textiles category is more than 50 per cent of the eligible project cost) is 15 per cent on eligible machines with CIS per individual entity being Rs 30 crore.

CIS rate for weaving for brand new shuttle-less looms (including weaving preparatory and knitting), processing, jute, silk and handloom as well as composite units (if the eligible capital investment in respect of garmenting and technical textiles category is less than 50 per cent) is 10 per cent on eligible machines with CIS per individual entity being Rs 20 crore.

The ministry has also notified the Scheme for Production and Employment Linked Support for Garmenting Units (SPELSGU) under ATUFS to incentivise production and employment generation in the garmenting sector. The additional incentive of 10 per cent will be provided to the units which would be availing the 15 per cent CIS under ATUFS for the installation of eligible benchmarked machinery after a period of 3 years.

The cap on CIS for the eligible machinery in the garmenting units has therefore been enhanced from Rs 30 crore, which was the cap under ATUFS, to Rs 50 crore. This additional subsidy of 10 per cent will be on achievement of the projected production and employment generation, as stated by the unit in its Detailed Project Report (DPR).

An allocation of Rs 17,822 crore has been approved for seven years to meet the committed liabilities of Rs 12,671 crore and Rs 5,151 crore for new cases under ATUFS. Budget provision for the financial year 2016-17 is Rs 1,830 crore. However, there is no specific budget provision for any particular segment, including Handloom sector since the scheme is demand driven. (KD)

Fibre2Fashion News Desk – India


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