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Revised TUFS may extend to 'blackout period' too
22 Feb '12
2 min read
The Ministry of Textiles is likely to extend the revamped Technological Upgradation Fund Scheme (TUFS) to the 'blackout period', in view of poor response for the scheme so far.
The 'blackout period' for the Indian Textile industry corresponds to the duration between 29 June, 2010 and 27 April, 2011 when no funding support was available. The modified TUFS was suspended in June 2010 and the revised TUFS was introduced in April 2011.
Speaking on the sidelines of Texpo 2011, a buyers-sellers meet, in Mumbai, Textile Commissioner AB Joshi said the Ministry of Textiles is considering to extend the revised TUFS to blackout period retrospectively. It will be subjected to the same terms and conditions as the revised TUFS, he added.
Mr. Joshi informed that only Rs. 1.6 billion out of the total outlay of Rs. 19.72 billion for revised TUFS has been availed by the textile industry so far. It is because the textile sector has put expansion projects on hold owing to decline in demand from global markets.
The Indian textile sector has also been affected due to financial crisis in the US and the eurozone debt crisis, as the EU and the US constitute major destinations for its exports.
Since TUFS was first implemented in 1999, the Centre has released total subsidy of Rs. 112 billion, with an amount of Rs. 88.83 billion released during the last three years.
From 1999 till now, TUFS is estimated to have resulted in investments worth Rs. 2,080 billion in the Indian textile sector.
By the end of the current financial year on March 31, 2012, the Ministry of Textiles is expecting claim amount under TUFS to reach Rs. 4 billion.
The 'blackout period' for the Indian Textile industry corresponds to the duration between 29 June, 2010 and 27 April, 2011 when no funding support was available. The modified TUFS was suspended in June 2010 and the revised TUFS was introduced in April 2011.
Speaking on the sidelines of Texpo 2011, a buyers-sellers meet, in Mumbai, Textile Commissioner AB Joshi said the Ministry of Textiles is considering to extend the revised TUFS to blackout period retrospectively. It will be subjected to the same terms and conditions as the revised TUFS, he added.
Mr. Joshi informed that only Rs. 1.6 billion out of the total outlay of Rs. 19.72 billion for revised TUFS has been availed by the textile industry so far. It is because the textile sector has put expansion projects on hold owing to decline in demand from global markets.
The Indian textile sector has also been affected due to financial crisis in the US and the eurozone debt crisis, as the EU and the US constitute major destinations for its exports.
Since TUFS was first implemented in 1999, the Centre has released total subsidy of Rs. 112 billion, with an amount of Rs. 88.83 billion released during the last three years.
From 1999 till now, TUFS is estimated to have resulted in investments worth Rs. 2,080 billion in the Indian textile sector.
By the end of the current financial year on March 31, 2012, the Ministry of Textiles is expecting claim amount under TUFS to reach Rs. 4 billion.
Fibre2fashion News Desk - India
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