Plan panel opposes second-hand textile machinery import.

19 Jan '07

1 min read

Textile Ministry's earlier proposal to waive 5 percent interest under TUFS to firms to purchase old machinery from abroad is being opposed by Planning commission.

Its earlier proposal to extend Technology Upgradation Fund Scheme (TUFS) has already faced objection from Planning Commission.

With few companies producing textile machinery, Textile Ministry is in favour of providing financial assistance to firms to import second-hand machinery.

India is already a major importer of textile machinery from Europe and America. and presently is the largest importer of Swiss textile machines.

Plan panel voiced its apprehension for subsidised imports of old machinery as a WTO issue, moreover extending TUFS to imports of old machinery too could go against WTO guidelines, informed Sudripta Roy, Joint Secretary, Textiles Ministry at a seminar organised by Confederation of Indian Textile Industry

Planning Commission believes that this will bring-in obsolete technology in India.

According to analysts, Textile Ministry plans to import second-hand machinery as imported machinery is twice as costly as Indian machinery.

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