According to a recent circular issued by the Union Textile Ministry, the Expenditure Finance Committee (EFC) has decided not to issue any new sanctions under the Technology Up-gradation Fund scheme (TUFs), till the Cabinet Committee on Economic Affairs (CCEA) approves new allocations for the scheme. The circular has been dispatched to all the nodal agencies and banks concerned.
All the nodal agencies and banks have been advised to freeze all new proposals, even those, which have already been submitted to them. This decision, say experts, will have an adverse effect on the modernization drive of the textile industry and which had benefited all the sections of the industry in the last few years since the scheme came in to existence and helped them become competitive in domestic as well as global markets.
TUFS is one of the highly successful schemes implemented by the Government of India. Indian textile industry was reeling under the impact of out-dated technology apart from other traditionally identified drawbacks with little or no value-addition to speak of. However, introduction of this scheme has proved to be a proverbial lifeline for the textile and allied industries.
Since the inception of the scheme from April 1999 till June 2009, TUFS has attracted 26,087 applications entailing a combined project cost of Rs 182269.91 crores of which the loan application was for Rs 84747.01 crores. Of which, 25,893 applications were sanctioned for a total project cost of Rs 179856.38 crores again of which the loan component totaled to Rs 78306.20 crores.
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Fibre2fashion News Desk - India
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