TEXPROCIL welcomes continuation of TUFS

The Cabinet Committee on Economic Affairs has given its approval for continuing the Technology Upgradation Fund Scheme (TUFS) during the 12th Plan period with a major focus on improving the weaving capacity in accordance with the Budget announcement for the financial year 2013-14.

Capital Subsidy for new shuttleless looms has been raised from 10 percent to 15 percent and the Rate of Interest Reimbursement has been increased from 5 percent to 6 percent. Further, the margin money subsidy has been increased from 20 percent to 30 percent with an increase in subsidy cap from Rs. 1 crore to Rs. 1.5 crores.

Welcoming the continuation of the Scheme, Shri Manikam Ramaswami, Chairman, Texprocil stated that as the Indian textile industry has emerged as the most competitive textile industry in the world, there is a huge potential to increase TEXPROCIL’S exports by 50% YOY(year on year), thus adding another US $ 5 Billion in exports each year and another 2 lac jobs each year, should capacity addition happen rapidly.  Export Market is not going to be a constraint given our enormous strengths, he added. India, he said can ‘push aside’ competition and grow even in a shrinking global market.

Shri Ramaswami also requested the Government to include cases covered under the “blackout period”, when government was in the process of fine tuning the scheme, as should be, so that the mills can have the necessary margin money to rapidly scale up and fully exploit the potential .TEXPROCIL therefore earnestly requests the Ministry of Textiles to expeditiously decide on the inclusion of the black out period under the current TUF Scheme.

TEXPROCIL