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Mr. Anand Sharma
Minister of Textiles and Commerce & Industry Govt. of India
TUFS is to be favored in upcoming 12th Plan too. Can you please share some details about it and how is it going to benefit the industry as a whole?
The restructured Technology Upgradation Funds Scheme (TUFS) is presently approved up to 31st March next year. The working group on Textiles and Jute for the 12th Five Year Plan has recommended continuation of the Scheme during the 12th five year plan given the positive benefits of the Scheme and the continued need for modernization, especially in the hitherto unaddressed areas of weaving, processing, etc. with a projected outlay of Rs. 15886 crores for the entire 12th five year plan period.
The TUFS scheme has been extremely successful in mobilizing significant investments into the textiles industry. As I had said, Rs. 2.07 lac crores of investments could be catalyzed under TUFS. Government has approved an allocation of Rs. 7432 crores including Rs. 1972 crores for TUFS for 2011-12. I do hope that the textiles industry’s investment needs will be adequately addressed with this allocation.
Sir, to talk policies in specific; what is your opinion on beneficiary aspects of National Manufacturing Policy for the textile sector?
The proposals in the Policy are generally sector neutral, location neutral and technology neutral except incentivization of green technology. While the NIMZs are an important instrumentality, the proposals contained in the Policy apply throughout the country wherever industry is able to organize itself into clusters and adopt a model of self-regulation as enunciated. Textiles industry has a lot to gain if it decides to benefits from the concessions and flexibilities given in the policy.
A defining feature of the Policy has been the endeavor to improve the business regulatory environment by providing single window clearances.
In order to protect the interests of labor in the eventuality of a closure of a unit, a suitable mechanism has been devised using innovative job loss policy/sinking fund to insure workers against such loss.
Moreover, the third party inspections to supplement the inspections by government agencies for compliance monitoring for both labor and environment are included.
Green manufacturing has received a special attention and a Technology Acquisition Fund will be established to acquire global technologies and build a patent pool for appropriate sectors including manufacturing of equipments, which seeks to reduce energy consumption.
Attuning on the same note, I am glad to share that we at Fibre2fashion, taking initiative for giving back to society through a campaign meant to spread awareness about <i>Sustainable and Environment Friendly Manufacturing</i> practices in one of the most pollutant sectors- dyes & chemicals, are coming up with special feature on Sustainability. Millions of our global visitors who have welcomed the concept, would love to know your take on "Sustainability and doing business the responsible way."
Sustainable business practices are not only a collective responsibility of the entire generation but a business imperative also. As discussed previously, in National Manufacturing Policy we have incentivized green technologies. Green manufacturing has received a special attention and a Technology Acquisition Fund will be established to acquire global technologies and build a patent pool for appropriate sectors including manufacturing of equipments, which seeks to reduce energy consumption.
India has made rapid strides in the renewable energy sector and we are the fifth largest wind energy producers in the world. Our ambitious National Solar Mission has set a target of 20 GW solar power generation capacities in this decade. We will also be adding 25 GW of nuclear energy capacity over the next decade, which will see investment of over US$ 80 billion. Similarly, India has a total hydropower potential of 150 GW with huge untapped potential especially in the small and micro Hydel sector.
Sir, as the industry is all set on her growth path, concluding our talk here, any message you may like to give to investor community-
India continues to be one of the favored destinations for FDI, having been reported as the third most attractive investment location for 2011-13 by UNCTAD World Investment Report (WIR) 2011.
There have been many rationalizations and steps to streamline investment climate and Consolidated FDI circulars document these steps. We will continue to make the FDI policy more investor friendly.
Click here to view Face2Face with Former Union Textile Minister (2010), Govt of India
Click here to view Face2Face with Former Union Textile Minister (2007), Govt of India
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