The Government has provided Technology Upgradation Fund(TUFS) to the Textile Industry with a view to modernize the industry. This wasan excellent step towards improving the performance of the domestic textileindustry. Though the Scheme was in operation from April 1999, the TextileIndustry started availing the facility significantly after 2002. Thisobviously helped the Textile Engineering Industry (TEI) as more orders werereceived. This also prompted the (TEI) to increase the capacity.

Further, the Government gave special subsidy for Hi-Techprocessing machinery. This resulted in development of some such machinery inthe country because second hand processing machinery is not allowed under TUFSas in case of Spinning Machinery.

Since organized mills sector did not have enough loomagecapacity and the weaving capacity was largely in the decentralized sector (2.0million approx), the same never had the momentum for modernization.

The Textile Industry, in general, in earlier years and thedecentralized sector in particular, always preferred cheap used vintagemachinery from abroad. The low level of technology was encouraged by theGovernment particularly in the weaving sector even under the TUFS. Cheaperimport from China is also preferred.

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TheAuthor is Secretary, Textile Machinery Manufacturers Association (India)