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Federation recommends Textile Commissioner to revive TUFS
15 Dec '10
2 min read
The Federation of Indian Art Silk Weaving Industry (FIASWI) in its recent recommendations put forth before the Textile Commissioner has insisted that the textile sector including technical textiles should be excluded from the Generalised Sales Tax (GST), and that the Technology Upgradation Fund Scheme (TUFS) should be revived.
The suggestions were put forward through a pre-budget proposal which suggested the immediate revival of TUFS. The delay in its revival is impeding the rapid modernization of the man-made fabric industry in Surat, as all the small, medium and big entrepreneurs are awaiting the Textile Ministry's decision on revival of the scheme.
The Expenditure Finance Committee (EFC) under the new guidelines released in June 2010, directed the banks and financial institutions not to approve sanctioning of any new funds under TUFS, and to discontinue releasing funds under the scheme, till the Cabinet Committee on Economic Affairs (CCEA) approves further allocation of funds.
The textile sector in Surat contributes around 40 percent of the country's overall demand for man-made fabric, which is mainly because of the rapid development it has undergone in recent years which is primarily attributable to the interest and capital subsidy under the TUFS. The sector, mainly the powerloom sector has achieved tremendous growth over the last 10 years with the introduction of modern machines like water jets, Rapier and imported shuttle-less looms.
The suggestions were put forward through a pre-budget proposal which suggested the immediate revival of TUFS. The delay in its revival is impeding the rapid modernization of the man-made fabric industry in Surat, as all the small, medium and big entrepreneurs are awaiting the Textile Ministry's decision on revival of the scheme.
The Expenditure Finance Committee (EFC) under the new guidelines released in June 2010, directed the banks and financial institutions not to approve sanctioning of any new funds under TUFS, and to discontinue releasing funds under the scheme, till the Cabinet Committee on Economic Affairs (CCEA) approves further allocation of funds.
The textile sector in Surat contributes around 40 percent of the country's overall demand for man-made fabric, which is mainly because of the rapid development it has undergone in recent years which is primarily attributable to the interest and capital subsidy under the TUFS. The sector, mainly the powerloom sector has achieved tremendous growth over the last 10 years with the introduction of modern machines like water jets, Rapier and imported shuttle-less looms.
Fibre2fashion News Desk - India
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