Textile ministry requires Rs 18.84 bn at RE stage 2009-10

06 Nov '09

5 min read

The Ministry of Textiles has disbursed Rs. 66,275 crore under the Technology Upgradation Funds Scheme (TUFS) from the inception of the Scheme on April 01, 1999, till June 30, 2009. This was stated by Thiru. Dayanidhi Maran, Union Minister of Textiles, while addressing the Parliamentary Consultative Committee of his Ministry here late evening yesterday.

Thiru. Maran said that the TUFS has stimulated additional investments of Rs.1,79,834 crore; benefited 25,809 textiles units, including 18,266 small scale units. The Scheme had enabled the textiles industry to successfully face challenges of global competition;. reduced the cost of capital for acquisition of the state- of- the- art technology by 5%;ignited growth of processing, garmenting and technical textiles sectors by extending 10% capital subsidy; assisted the powerloom units by extending 20% margin money subsidy and empowered the small scale sector with 15% capital subsidy.

“The entire textiles value chain from cotton ginning and pressing till the clothing / made-up stage has availed of benefit under TUFS and the composite upgradation, spinning, processing and weaving segments of textiles chain are the major beneficiaries of TUFS”, Thiru. Maran said.

The Textiles Minister further informed the Members of the Committee that the States of Tamil Nadu, Punjab, Gujarat, Maharashtra and Rajasthan are the major beneficiaries of the Scheme, because these States have potential textiles growth centres where textiles related activities have been carried out historically. The popularity of the Scheme can be assessed from the fact that the allocation on account of interest support has been increasing and it was Rs. 485 crore in 2005-06, Rs. 824 crore in 2006-07, and Rs. 945 crore in 2007-08, which was subsequently increased to Rs. 1,198 crore at R.E. stage. Rs. 1,090 crore was provided for 2008-09, Thiru. Maran added..

Thiru Maran said the Ministry had made a provision of Rs. 2,890 crore and released subsidy of Rs 2,546 crore under the Technology Upgradation Fund Scheme (TUFS) on August 06, 2009. “This is for the first time that such a large amount of subsidy has been released in a single tranche and the amount was credited to the bank accounts of beneficiaries in the record time of 72 hours (3 working days). To clear the subsidy till December 2009, we will be requiring additional amount of Rs. 1,884 crore at RE stage 2009-10”, said the Minister.

Giving an overview of the working of the National Textile Corporation(NTC) ,Thiru Maran said that with the help of active support of the Government, the NTC has come out of the red and has drawn a plan to achieve a turnover of Rs 2014 crore by 2014 from the current level of Rs 524 crore during 2008-09 . The revival and modernization of NTC mill has been due to Rs. 5,267 crore modified revival Scheme, which was approved by BIFR in 2006-07. The Scheme envisages revival of 43 mills, of which 24 mills are beingmodernized by NTC itself and 19 mills are being modernized through Public Private Partnership (PPP) mode. NTC has completed modernization of 17 mills, and the modernization of 18th mill, i.e., Cannanore Spg & Wvg mills, Kannur, Kerala will be completed soon. The company is engaged in the bringing in three Greenfield Composite Mills one each in the States of Karnataka , Maharashtra and Gujarat. NTC has so far spent Rs 663 crore towards modernisation,said the Textiles Minister.

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