Govt Approves TUF To Attract Rs 1 lakh Cr investment In Textiles Sector
30 December, New Delhi
The Government Wednesday approved amended technology upgradation fund scheme for textiles industry which it said would help in attracting investment of Rs 1 lakh crore and creating over 30 lakh jobs.
The Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi has approved the introduction of “Amended Technology Upgradation Fund Scheme (ATUFS)” in place of the existing Revised Restructured Technology Upgradation Fund Scheme (RR-TUFS), for technology upgradation of the textiles industry, with effect from the date of notification of the scheme, said an official statement.
According to the release, the new scheme specifically targets employment generation and export by encouraging apparel and garment industry, which will provide employment to women in particular and increase Indias share in global exports.
It also aims at promoting technical textiles, a sunrise sector, for export and employment.It also aims to encourage conversion of existing looms to better technology looms for improvement in quality and productivity. Besides, it is also meant to encourage better quality in processing industry and check need for import of fabrics by the garment sector.The amended scheme would give a boost to Make in India in the textiles sector; it is expected to attract investment to the tune of one lakh crore rupees, and create over 30 lakh jobs, it said.
A budget provision of Rs 17,822 crore has been approved, of which Rs 12,671 crore is for committed liabilities under the ongoing scheme, and Rs 5,151 crore is for new cases under ATUFS, it further said.It added,
All cases pending with the Office of Textile Commissioner which are complete in all respects, will be provided assistance under the ongoing scheme and the new scheme will be given prospective effect.Office of Textile Commissioner (TXC) is being reorganised; its offices shall be set up in each state. Officers of the TXC shall be closely associated with entrepreneurs for setting up the industry, including processing proposals under the new scheme, verifying assets created jointly with the bankers and maintaining close liaison with the state government agencies, the statement said.
The implementation of the scheme would be executed and monitored online under iTUFS, launched in April 2015, it added.Under the new scheme, apparel, garment and technical textiles, where 15 per cent subsidy would be provided on capital investment, subject to a ceiling of 30 crore rupees for entrepreneurs over a period of five years and;
Remaining sub-sectors would be eligible for subsidy at a rate of 10 per cent, subject to a ceiling of Rs 20 crore on similar lines.