Amended Technology Up gradation Fund Scheme for Textiles industry

10 months ago Sarkari user 0

The Cabinet Committee on Economic Affairs, chaired by the Prime Minister Shri 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.

Amended Technology Up gradation Fund Scheme for Textiles industry

Overview: Ministry of Textiles introduced the Technology up gradation fund scheme (TUFS) for textiles and jute industry in April 1999 to facilitate new and appropriate technology for making the textile industry globally competitive and to reduce the capital cost for the textile industry. A sum of Rs. 21,347 crore has been funded as assistance to the industry during 1999 – 2015. It has led to investments worth Rs. 2,71,480 crore, and increases job opportunities for nearly 48 lakh people. It includes the benefits like 5% interest reimbursement of the normal interest charged by the lending agency on RTL, or 5% exchange fluctuation (interest & repayment) from the base rate on FCL, or 15% credit linked capital subsidy for SSI sector, or 20% credit linked capital subsidy for power loom sector, or 5% interest reimbursement plus 10% capital subsidy for specified processing machinery under Amended Technology Up gradation Fund Scheme.

 

There will be two broad categories under Amended Technology Up gradation Fund Scheme:

  • Apparel, Garment and Technical Textiles, where 15 percent subsidy would be provided on capital investment, subject to a ceiling of 30 crore rupees for entrepreneurs over a period of five years.
  • Remaining sub-sectors would be eligible for subsidy at a rate of 10 percent, subject to a ceiling of Rs.20 crore on similar lines.

Target:

  1. Job opportunities and export by encouraging apparel and garment industry, which will provide employment to women in specific and increase India’s share in global exports.
  2. Promotion of Technical Textiles, a sunrise sector, for export and employment.
  3. Promoting conversion of existing looms to quality technology looms for improvement in quality and productivity.
  4. Encouraging better quality in processing industry and  checking need for import of fabrics by the garment sector.