Maharashtra may delink its Textile Policy from TUFS

23 Feb '13

2 min read

In a bid to boost investment and creation of more employment opportunities in the textile sector of the state, the government of Western Indian state of Maharashtra is considering delinking of the state’s textile policy from the Centre’s Technology Upgradation Fund Scheme (TUFS), a state government official told PTI, Business Standard reported.

The existing policy announced in March 2012, allows 12 percent interest subsidy for establishment of new textile units, which includes 5 percent interest subsidy extended under TUFS.

Under TUFS, textile units are required to place their investment proposals before banks, which would clear the same as per availability of funds.

The state government has made budgetary provisions for various sectors like spinning, ginning, weaving, sewing, garments and processing, under different heads. If the time line for provisions expires before the proposal gets approved by the bank, it would leave big backlog of proposals pending clearance. Meanwhile, the investors would also not be able to get the UID number.

So, the state government is deliberating on delinking the state’s textile policy from TUFS, so as to clear the way for those investors who are willing to proceed with only the seven percent interest subsidy for setting up their textile units in Maharashtra, the official said.

If the state government makes changes in its textile policy, the investors would be initially able to avail the seven percent interest subsidy, and the five percent subsidy under TUFS can be availed when their proposal is cleared by the bank, the official said.

Fibre2fashion News Desk - India

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