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TEA appeals to restore TUFs Subsidy

01 Jul '10
4 min read

Tirupur Exporters' Association's President Shri.A.Sakthivel requests Thiru. Dayanidhi Maran, Hon'ble Union Minister of Textiles to take up the matter with Finance Ministry for restoration of TUF Subsidy for new sanctions & proposals in pipeline.

We are thankful to the Hon'ble Minister for taking various measures pragmatically to bailout the crisis ridden knitwear garment sector and always encouraging the exporters to explore the new markets and be ready to promote the exports. The textile industry has got real boost in the past one year due to the Hon'ble Minister's full attention for the development in domestic as well as in the international market.

We are shocked to notice the Circular No:2 (2010-2011 Series) dated 30th June 2010 issued by office of the Textile Commissioner, Ministry of Textiles informing the decision of Expenditure Finance Committee (EFC) dated 28.06.2010 and in pursuance of this, Nodal Agencies / Nodal Banks / Co-opted PLIs have been advised not to issue any further new sanctions under TUFS till additional allocations are approved by Cabinet Committee on Economic Affairs (CCEA) and also lending agencies have been advised to freeze all new proposals in pipeline till additional allocations are made.

We would like to make a note of it that TUFs has provided a fresh lease of life to the textile industry and has helped to overcome technological obsolescence.

We wish to mention that our buyers are insisting us to go for the bigger capacities in our factories to take the advantage of economies of scale and also the modernization with state of art technology machinery are needed on continuous basis so as to produce quality garments to meet out the requirements of buyers and sustain in the global market.

It may be noted that the exporters have shelved their proposals to go for the modernization / capacity increase since 2008, as the global recession has derailed their plan and decided to revive the plan afterwards, as the TUF scheme is existing till 2012. Now, a few exporters have given their proposal to the banks and many of the exporters are contemplating to give their proposal of modernization / increasing their factories capacity to banks.

In the Draft National Fibre Policy 2010-11 dated 8th June 2010 also, it has been suggested that the coverage of TUFs will result in attract more investments and also emphasized the need to give incentives for manmade fibre manufacturing units. When the production of manmade fibre get increased, the consumption of fibres in our country could be increased only by increasing the capacities in garment units, with latest machinery. As there is a good market for manmade fibre garments throughout the year in global, the knitwear garment units have planned to manufacture manmade fibre garments, as of now we are manufacturing almost 95% of cotton based garments which has a market for only three months.

To fulfill our objective also, AEPC has setup Knitwear Technology Mission in Tirupur and will provide all kinds of technical support for manufacturing of manmade fibre garments. We would like to drive home the point that a huge investment is required for switching over from manufacturing cotton based garments to manmade fibre garments, as the knitting machinery are costlier and also new technology is required for processing activity.

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