Ministry of Textiles (MoT) may bring a new scheme which can replace Amended Technology Upgradation Fund (ATUF) scheme that concludes on 31 March 2022.
A virtual meeting of MoT’s senior officials and industry representatives across the country took place in this regard. The new scheme may be called the Textile Technology Development scheme.
So far most of the machines for knitting, weaving and technical textiles used to get 5 to 7 per cent interest subsidy for 5 years under the ATUF scheme.
As per the sources, under the new scheme, there will be more support now, which could be around 25 per cent in one go.
Stakeholder discussion was held today under Chairmanship of Secretary (T), Sh U.P. Singh, with Textile Industry Associations to discuss conceptualization of new scheme replacing ATUFS. The meeting was also attended by Sh V. K. Singh, Additional Secretary & other senior officials. pic.twitter.com/Xu1TsDK9lu
— Ministry of Textiles (@TexMinIndia) January 13, 2022
“There can be a maximum grant of 25 per cent with the maximum limit of Rs. 10 to Rs. 25 crore for every unit, and there can be a limit on the units’ wish to avail the benefit of the scheme,” told an industry representative present in the meeting.
He further added that the grant will be higher in terms of percentage for processing plants, ETPs. For garmenting projects, it can be 25 per cent with a cap of Rs. 10 crore.
Industry representatives insisted on allowing more grants and ending the limit of maximum number of units willing to invest.
