Confederation of Indian Textile Industry (CITI) has welcomed the approval of the Cabinet Committee on Economic Affairs to the modified Technology Upgradation Fund Scheme (TUFS) for implementation during the 11th Five Year Plan period.
In a statement here, Shri P.D Patodia, Chairman, CITI thanked the Government and the Ministry of Textiles for incorporating certain positive changes in the modified Scheme.
“The upfront capital subsidy of 10% extended to the apparel and technical textile segments, in addition to 5% interest reimbursement, will encourage these potential and important segments of the industry to establish large production facilities in order to achieve economies of scale”, Shri P.D. Patodia pointed out.
With TUFS in abeyance since April 2007, investments in the entire textile chain had been affected substantially and this had also created serious problems for the textile machinery industry.
With the clearance of the Scheme by the Government, investment momentum will improve and the textile machinery industry will also be able to improve their capacity utilization.
Chairman, CITI added that TUFS has the potential to impart competitiveness to the industry in the medium term. However, for immediate relief in the context of the Rupee appreciation and interest escalation, it will be necessary to reimburse the State duties and make packing credit available at 6%.
Shri Patodia pointed out that survival for the industry in the short-term is an urgent and important requirement to ensure that the industry is table to take advantage of the positive policy inputs which can help during medium term.
-Ltd..jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Thermore (Far East) Ltd.")
.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Telangana State Industrial Infrastructure Corporation Limited (TSllC Ltd)")
.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Taiwan Textile Federation (TTF)")
