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Govt begins settling dues under TUFS
21 Jan '16
2 min read
The government has initiated the process of settlement of Rs 3,000 crore dues related to some 'blackout and left-out' cases which found no mention in the Amended Technology Upgradation Fund Scheme (ATUFS) for the textile sector. The development is seen as a major relief for the sector.
"The process of settlement of dues related to the old cases has started," Textile Secretary Rashmi Verma said.
Last week, Textiles Minister Santosh Gangwar had said that the government was working to resolve the issue of settlement of committed liabilities of around Rs 3,000 crore arising out of 'blackout and leftout' period cases under technology upgradation scheme (TUFS) for textile industry.
Confederation of Indian Textile Industry (CITI) Secretary General Binoy Job said the quantum of liabilities under the blackout and left-out period cases was around Rs 3,000 crore.
The settlement of the committed liabilities had been a grey area after the government did not mention anything about it when it notified ATUFS for textile sector last week.
The Union Cabinet approved the ATUFS in December in place of the Revised Restructured TUFS (RRTUFS) for technology upgradation of textile industry, a move expected to boost job creation and exports in the sector.
During 2010-11, the RRTUFS was suspended for 10 months but eventually restored as a closed-ended scheme and restricted to future sanctions and committed liabilities reported by banks for sanctions already issued.
The closed ended scheme was introduced without sufficient notice from the government for preparation on part of lending institutions, according to industry officials.
Those who had invested in those 10 months in the so-called blackout period were left out and are still awaiting a decision on the eligibility of TUF scheme.
Meanwhile, Gangwar has said the Textiles Ministry may approach the Cabinet for its approval for the new national textiles policy that seeks to create 35 million jobs and boost exports to over $300 billion.
"The draft policy is ready and discussions are on. We hope to place it before the Union Cabinet in a month's time," Gangwar said at the inauguration of the India International Garment Fair (IIGF) in New Delhi. (SH)
"The process of settlement of dues related to the old cases has started," Textile Secretary Rashmi Verma said.
Last week, Textiles Minister Santosh Gangwar had said that the government was working to resolve the issue of settlement of committed liabilities of around Rs 3,000 crore arising out of 'blackout and leftout' period cases under technology upgradation scheme (TUFS) for textile industry.
Confederation of Indian Textile Industry (CITI) Secretary General Binoy Job said the quantum of liabilities under the blackout and left-out period cases was around Rs 3,000 crore.
The settlement of the committed liabilities had been a grey area after the government did not mention anything about it when it notified ATUFS for textile sector last week.
The Union Cabinet approved the ATUFS in December in place of the Revised Restructured TUFS (RRTUFS) for technology upgradation of textile industry, a move expected to boost job creation and exports in the sector.
During 2010-11, the RRTUFS was suspended for 10 months but eventually restored as a closed-ended scheme and restricted to future sanctions and committed liabilities reported by banks for sanctions already issued.
The closed ended scheme was introduced without sufficient notice from the government for preparation on part of lending institutions, according to industry officials.
Those who had invested in those 10 months in the so-called blackout period were left out and are still awaiting a decision on the eligibility of TUF scheme.
Meanwhile, Gangwar has said the Textiles Ministry may approach the Cabinet for its approval for the new national textiles policy that seeks to create 35 million jobs and boost exports to over $300 billion.
"The draft policy is ready and discussions are on. We hope to place it before the Union Cabinet in a month's time," Gangwar said at the inauguration of the India International Garment Fair (IIGF) in New Delhi. (SH)
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