Home / Knowledge / News / Textiles / Tough without TUFS!
Tough without TUFS!
27
Aug '10
Textile makers in India are finding themselves in the most awkward quandary. Bothered by another crucial issue in their industry; suspension of long appreciated and popular Textile Upgradation Fund Scheme (TUFS), these mills owner are heartily looking forward to resumption of their benefactor scheme once again.

The circular issued by the ministry of textile to all the nodal agencies and banks concerned on Wednesday, the Expenditure Finance Committee (EFC) arrived at decision on June 28, to stop issuing any further new sanctions under TUFS till the additional allocations are approved by Cabinet Committee on Economic Affairs (CCEA). Therefore, agencies paying out funds under TUFS are advised to suspend all new proposals in offing till uncertain period.

For a closer look on this issue and its impacts on its subject industry, News team at fibre2fashion interacted with players from the industry as well as associated organizations.

Bringing out significance of this scheme, D R Mehta, President – TAI, narrated pre-TUFS milieu in industry by saying- “The industry was reeling under technology setbacks, old outdated machinery with the manufacturers, not much technological advancement was prominent in the Indian textile Machinery manufacturers, etc. The quality as well as quantity of product was not up to the mark as expected by the world buyers.

This gave a clear cut setback to the industry. TUFS scheme was set in with this objective that our industry will enhance its quality and quantity of its produce and be competitive in the world market, and the scheme was welcomed by the Indian textile industry. Launch of TUF Scheme in 1999 has substantially benefited the textile industry and proved to be very successful and effective for expansion and modernization. The spinning sector in the country alone has used 34% of the total amount sanctioned. Through it, the industry brought in the latest available machinery into Indian industry. This did give them a strong foothold in the World market.”

Thereon, Mr Mehta expressed his concern over the upshots likely to befall as this scheme is dropped. He told that the industry will surely go in reverse mode as up gradation will no more be cheap. The projects that are lined up till the scheme prevailed, will take time to fructify and cause delay in being updated. Industry will take its own time to get going with these impediments.

Mr Mehta, drawing picture of industry reactions, pointed that –“Industry is upset. We feel TUF scheme is necessary to further augment spinning, processing, weaving and garmenting capacities by utilizing the advantage of surplus cotton in India.

While textile ministry sources said the scheme is being reworked and it will take two to three months to lift the suspension, the garment manufacturers are worried on the implication of the notice.”

In his opinion, since 2008, due to global recession, the exporters had shelved theirproposals to go in for modernization and capacity augmentation, and have now decided to revive expansion as the scheme would be available only till 2012. Industry had very slow pick-up in using the fund till 2003. After March 2007, when the TUFS was continued in the 11th plan, manufacturers couldn't utilize many funds due to the poor performance of the industry. Now, they have again started new projects and this scheme is very crucial for the industry. They wish recent move by the government is only a temporary measure.


Must ReadView All

Textiles | On 20th Sep 2017

India needs to double cotton farmers’ income: top official

India needs to double the income of cotton farmers and non-farmers...

Textiles | On 20th Sep 2017

Pakistan seeks more JVs with China: textile minister

The Pakistani Government wants to forge more joint ventures (JVs)...

Apparel/Garments | On 20th Sep 2017

Egypt’s garment exports touch $941 million in 8 months

Egypt's garment exports touched $941 million in the first eight...

Interviews View All

Shawn Honeycutt
Bolger & O'Hearn

‘The Indian market is interesting and rather persistent in seeking new...

Veronique Lee
Modavanti

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

Headhonchos
Indian textile value chain

Adopt innovative techniques, go for automisation rather than being...

Ashok Desai
Bombay Textile Research Association

Bombay Textile Research Association (BTRA) is a leading name in textile...

Urs Stalder
Sanitized AG

Urs Stalder, CEO, Sanitized AG, talks about the increasing use of hygiene...

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Sanjukta Dutta
Sanjukta's Studio

<b>Sanjukta Dutta</b> creates unique garments by clubbing prints of...

Silvia Venturini Fendi
Fendi s.r.l

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

Madhu Jain
Madhu Jain

She grew up in the walled city of Old Delhi, completed her studies, and...

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

September 2017

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

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
74.5%
No
12.8%
Skip
12.8%

Total Votes: 47

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
61.7%
No
25.5%
Skip
12.8%

Total Votes: 47

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
87.2%
No
6.4%
Skip
6.4%

Total Votes: 47

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
70.2%
No
10.6%
Skip
19.1%

Total Votes: 47


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