Home / Knowledge / News / Textiles / Govt notifies ATUFS
Govt notifies ATUFS
15
Jan '16
The Government has notified the Amended Technology Upgradation Fund Scheme (ATUFS) which will provide one-time capital subsidy for investments in employment- and technology-intensive segments of the textile sector.

The move is aimed at promoting exports and import substitution. But the notification did not mention anything on the committed liabilities of around Rs 3,000 crore falling under cases in the blackout and left-out period, according to an agency report.

The scheme, which has been introduced in place of the existing Revised Restructured TUFS (RRTUFS), will be credit linked and projects for technology upgradation covered by a prescribed limit of term loans sanctioned by the lending agencies will only be eligible for grant of benefits under it.

It will be effective for a period of seven years, up to March 31, 2022.

"In case the applicant has availed of subsidy earlier under RRTUFS, he will be eligible for only the balance amount within the overall ceiling fixed for an individual entity. The maximum subsidy for overall investment by an individual entity under ATUFS will be restricted to Rs 30 crore," a textile ministry notification said.

Moreover, the cases pending for issue of Unique Identification Number (UID) since September 2014 as per records maintained by the Office of the Textile Commissioner shall be covered under the existing RRTUF Scheme.

Every individual entity will be eligible for one-time capital subsidy only on the eligible investment, as per the specified rates and the overall subsidy cap.

According to Confederation of Indian Textile Industry (CITI) Secretary General Binoy Job, the quantum of liabilities under the blackout and left-out period cases at around Rs 3,000 crore.

During 2010-11, the scheme was suspended for 10 months, but it was eventually restored as a close-ended scheme and restricted to future sanctions and committed liabilities reported by banks.

The close-ended scheme was introduced without sufficient notice from the government for preparation on part of lending institutions.

So, those who had invested in those 10 months in the so-called blackout period of 2010-11 were left out and are still awaiting a decision on the eligibility of TUF scheme on the black-out period.

The rate of Capital Investment Subsidy (CIS) for garment and technical textile segments has been kept at 15 per cent of the eligible machines, with CIS per individual entity at Rs 30 crore. (SH)

Fibre2Fashion News Desk - India

Must ReadView All

Textiles | On 29th May 2017

Special package creates 7,50,000 jobs in garment sector

The special garment package of Rs 6,000 crore that was introduced by...

Md Siddiqur Rahman, president, BGMEA, addressing a press conference with other dignitaries. Courtesy: BGMEA

Apparel/Garments | On 29th May 2017

BGMEA asks govt for 5% incentive for 2 years in Budget

The Bangladesh Garment Manufacturers and Exporters Association...

Textiles | On 29th May 2017

Tintex, Bruckner bring new effects to knitted fabric

The textile company Tintex has joined hands with the system supplier...

Interviews View All

Nitin Bhatia
Trend Arrest

Setting up a brand for online selling is easy, but running the brand is not

Dharmendra Shah
Ozone PB Spintex Limited

‘We have made huge investments to ensure quality yarn production.’

Veronique Lee
Modavanti

‘Sustainable fashion is trending upwards, slowly but surely, as people...

Marcel Alberts
Eurofibers

Coating at a fibre level is a practice not usually seen in the...

Kevin Nelson
TissueGen

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Mohammad Hassan
Biax Fiberfilm

About one in every 20 patients picks up an infection while hospitalised....

Robert Brunner
Devereux

Golfwear and menswear brand Devereux is set for greener pastures. Robert...

Silvia Venturini Fendi
Fendi s.r.l

"Yes, my confidence and positive attitude are my strengths and should be...

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer <b>Prathyusha Garimella</b> is known for blending ...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

news category


Related Categories:
May 2017

May 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search