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India's restructured TUFS evokes favorable response

18
Jul '12
The relaunching of Technology Upgradation Fund Scheme (TUFS) for the textile sector this year has been widely accepted and appreciated. 
 
TUFS has been launched by the Indian Government to help the Indian textile sector modernize its production units.
 
The revised TUFS scheme provides for reimbursement of five percent of the interest charged by financial institutions, against loans taken for the modernization of textile and jute industries. The major government banks, Small Industries Development Bank of India and the Industrial Finance Corporation of India are the key facilitators in this scheme.
 
Last month, the Indian Government sanctioned a sum of Rs. 70.52 billion under the restructured TUFS and the funds have to be utilized within the 12th Five-Year Plan period (2012-17).
 
About 2,800 applications seeking subsidy worth Rs. 35 billion have already been received under TUFS this year. In comparison, due to lukewarm response, a subsidy worth only Rs. 10.18 billion was approved last year.
 
Out of the allocated sum of Rs. 19.72 billion for the year 2011-2012, the Ministry could approve only Rs. 10.18 billion, which is a little over 50 percent. The remaining sum of Rs. 9.54 billion was added to the amount earmarked for this year.
 
During its first phase of 1999-2010, TUFS was highly successful as Rs. 1120 billion subsidy was granted, which generated an investment of Rs. 2080 billion.
 
Government of India has estimated an outlay for TUFS to be Rs. 158.86 billion for the 12th Five Year Plan period. This is Rs. 38.86 billion more than the allocation done during the 11th Five Year Plan that ended in March 2012.
 

Fibre2fashion News Desk - India


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