Govt to resolve committed liabilities under TUFS

18 Jan '16

2 min read

The Government is working to resolve the issue of settlement of committed liabilities of around Rs 3,000 crore arising out of 'blackout and leftout' period cases under technology upgradation scheme (TUFS) for textile industry, Textiles Minister Santosh Gangwar has said.

The settlement of committed liabilities had been a grey area after the government did not mention anything about it when it notified the Amended Technology Upgradation Fund Scheme (ATUFS) for textile sector last week.

"We are working towards resolving the issue of blackout and leftout period cases," Gangwar told PTI.

The Union Cabinet approved the ATUFS in December 2015 in place of the Revised Restructured TUFS (RRTUFS) for technology upgradation of textiles industry, a move expected to boost job creation and exports in the sector.

During 2010-11, the RRTUFS was suspended for 10 months but eventually restored as a closed-ended scheme and restricted to future sanctions and committed liabilities reported by banks for sanctions already issued.

The closed ended scheme was introduced without sufficient notice from the government for preparation on part of lending institutions.

So those who had invested in those 10 months in the so called blackout period of 2010-11 were leftout and are still awaiting a decision on the eligibility of TUF scheme on the black out period.

Last week, Confederation of Indian Textile Industry (CITI) Secretary General Binoy Job said the quantum of liabilities under the blackout and left-out period cases was around Rs 3,000 crore. (SH)

Fibre2Fashion News Desk - India

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