There will be no pending cases of TUFS!
The Government today assured textile industry that all the pending cases of Technology Upgradation Fund Scheme (TUFS) will be cleared expeditiously from the Office of Textile Commissioner. It is one of the main demands of Indian textile industry as there is a backlog of Rs. 9,000 crores of TUF subsidies severely affecting the financial conditions of the new investors.
A stakeholders meeting for knitting and knitwear sector development was held today, under the chairpersonship of Union Minister of Textiles Smriti Irani, where some important announcements were made.
Among such announcements were the sanctioning of Rs. 50 crore for knitwear sector, in addition to the opening of knitwear centres at Tirupur, Kolkata, Ludhiana and Surat.
The Government also said that under SAMARTH Scheme, training of 1 lakh workers has been approved for the knitwear industry at a budget of over Rs. 50 crore. Apart from industry representatives of many hubs like Tirupur and Ludhiana, others who attended the meeting included the likes of HKL Magu, Chairman and A Sakthivel, Vice Chairman, AEPC (Apparel Export Promotion Council).
Realising the importance of making textile sector globally competitive and grabbing the opportunities emerging in the post-WTO era, TUF scheme was launched during 1999 and later the same Government extended the Scheme for the period up to 31st March 2022 by allocating Rs. 17,822 crore. This budget allocation included Rs. 12,671 crore for committed liabilities of Modified Technology Upgradation Fund Scheme (M-TUFS), Revised Technology Upgradation Fund Scheme (R-TUFS) and Rs. 5151 crores for Amended Technology Upgradation Fund Scheme (A-TUFS).
This scheme attracted over Rs. 3.75 lakh crores of investments in the textile industry during the last two decades and created jobs for over 10 million people apart from enabling the Indian textile industry to become globally competitive and increasing its exports by manifolds.
The scheme was very effective and industry-friendly till 2007 when the scheme was open ended. However, later many complications were brought into the guidelines, which got further complicated at every stage thereby resulting in a backlog of Rs. 9,000 crore of TUF subsidies severely affecting the financial conditions of the new investors.