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Technology Upgration
Fund Scheme |
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Schemes Offered |
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Technology Upgration Fund Scheme (TUFS)
- Circular No 1 |
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TUF Scheme will be continued during the
eleventh plan against a provision of Rs. 535
Crore in 2006-07. Rs. 911 Crore would be
provided under TUF scheme in 2007-08. As
before handlooms will be covered under the
TUF scheme.
The extension of TUF, a central scheme
offers 5% interest subsidy to textile
companies on expansion spree, has been high
on the wish list of the industry. It wants
more incentives for investment as it aims to
double its global market to 10% by 2010. For
this, investments worth Rs 100,000 crore are
required. The Union Budget 2007-08 has been
positive for the textile sector. TUF Scheme
will be continued during the eleventh plan
against a provision of Rs. 535 Crore in
2006-07. Rs. 911 Crore would be provided
under TUF scheme in 2007-08. As before
handlooms will be covered under the TUF
scheme. Allocation under this scheme for the
next year has been increased which should
expedite the release of the subsidy.
Extended:
The Textile Ministry recently decided to
extend the ‘Technology Upgradation Fund’ (TUF)
scheme to “boost the textile industry”. The
industry has begged the extension of the 10%
upfront capital subsidy for specified
textile processing machinery by another
year. The subsidy is additional to the
interest subsidy of 5% under the TUF for
specified textile processing machinery and
the implementation period for the scheme is
one year. Which will end on April 19,
2006.Under the scheme, the government has
yet sanctioned 4,047 applications worth Rs
12,758 crore for expansion projects worth Rs
28,628 crore.The largest number of
applications for funding has come from
Gujarat (1,214).Tamilnadu got around 1,174
applications and Maharashtra 317.
In the industry, processing remains the weak
link in the production chain, and industry
players feel that the industry needs more
time to gear up to meet the need of the
post-quota setting. The extension of the
scheme would benefit a lot of such textile
processing units that have not avail the
savor if it. Also, TUF would greatly help
the textile industry to face global
competition.
“Most Indian manufacturers have not been
able to attain economies of scale.Now, many
of them are going on an expansion drive and
the TUF scheme is facilitating their move,
“S.P.Oswal, Chairman, Vardhman Group said.
The same attitude is noted from Abhinav Arya,
MD, Fabcare, who welcomed the scheme and
hoped that the industry would be more
flourishing by such act of the govt
According to Madhu Kapoor, Chairman, ALT,
“TUF is a boon to the industry. However its
management is critical. Simple procedure
will help the entrepreneur too encash on the
opportunity otherwise it remains on paper.
The same views ushered by Mrs.Anand of HCA
who stressed on the availability of the
skilled mechanics of the newly upgraded
machineries on economical root, especially
in India.
The latest data available with the Textile
Commissioner, textile units have picked up
nearly Rs 12,758 crore over the last three
years under the government of India’s
Technology Upgradation Fund Scheme (TUF)
which would see an addition of six million
spindles and 30,000 shuttle looms this year
The latest data available with the Textile
Commissioner, textile units have picked up
nearly Rs 12,758 crore over the last three
years under the government of India’s
Technology Upgradation Fund Scheme (TUF)
which would see an addition of six million
spindles and 30,000 shuttle looms this year
The Textile Minister, Shankar Singh Vaghela is
of the view that the domestic and apparel
industry would be the next Indian software
industry, offering international quality
products and services. The ministry of
textile is also hopeful that the extended
scheme will assist some more quality
standards on the international platform. The
industry people has welcomed the extension
and it is assumed that Indian apparel
exports are slated to grow at 15-18%
annually and win 5% of the global apparel
export market till 2010.
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