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, Shankersinh 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.
