SIMA Chairman hails clearance of pending TUF cases

Though the Government has in principle decided to extend the Scheme in the 12th Five Year Plan period, there is some delay in announcing the same as the Government is further modifying the Scheme aiming at addressing the fragmentation of the industry.  The modified Scheme would give more thrust for attracting investments in the processing and weaving sectors, particularly the power loom sector.

The TUF Scheme was paused during the period June 29, 2010 to April 27, 2011 for want of additional funds for the 11th Five Year Plan period and announced the Restructured TUF Scheme with investment caps for each sector, which are 21% for processing, 26% for spinning and 13% for weaving.

The Southern India Mills’ Association (SIMA) directly and also through Confederation of Indian Textile Industry (CITI) has been making concerted efforts for the last couple of months to continue the scheme in the 12th Five Year Plan and also clear the pending TUF benefits for several thousands of cases. 

At the sixth meeting of the Inter-Ministerial Steering Committee (IMSC) held on 18th May, 2012, the Committee in principal has decided to continue the Scheme in the year 2012-13 as the industry had utilized only around 13% of the total subsidy of Rs.1972 crores allocated for the year 2011-12. 

In a press release, Mr S Dinakaran, Chairman, SIMA thanked the Government particularly the Hon’ble Union Textile Minister and the Textile Secretary for the efforts made by them to continue the Restructured TUF Scheme in the year 2012-13.  He has stated that the Office of the Textile Commissioner would continue to issue Unique Identity Numbers in respect of sanctions issued by the lending agency on or after 1st April 2012 to the extent of unutilized amount of the subsidy cap of Rs.1972 crores / full tenure subsidy of Rs.7052 croes and the sectoral cap there under whichever is reached earlier.

SIMA Chairman has stated that the Government has been taking series of measures including the recent announcement of debt restructuring package to the tune of Rs.35,000 crores, revive the industry on a fast track mode from the worst every crisis it faced during 2010-11 and give a new lease of life.  Mr. Dinakaran has stated that with the considerable improvement on power supply position and improved market conditions, the industry has started performing well.  The Restructured TUF Scheme would enable the industry to have continuity in the technology upgradation of the existing units and also plan for new investments in the weaving and processing sectors.