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Govt. Amended TUFS Scheme for Textile Industry

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The Government has approved the “Amended Technology Upgradation Fund Scheme (A-TUFS)” in place of Revised Restructured Technology Upgradation Fund Scheme (RRTUFS) for technology up-gradation of the textile industry with one time capital subsidy for eligible bench-marked machinery for a period of seven years from 2015-16 to 2021-22.

NEW DELHI: Ministry has notified the Scheme for Production and Employment Linked Support for Garmenting Units (SPELSGU) under ATUFS to incentivise production and employment generation in the garment sector vide Resolution dated 25.07.2016.
This was informed by the Union Textiles Minister, Smriti Zubin Irani in a written  reply to a Rajya Sabha Question on Friday.
The additional incentive of 10% will be provided to the garmenting units which would be availing the 15% Capital In1vestment Subsidy (CIS) under ATUFS for the installation of eligible benchmarked machinery after a period of 3 years.

The cap on capital investment subsidy for the eligible machinery in the garmenting units has therefore been enhanced from Rs. 30 crore which was the cap under ATUFS, to Rs. 50 crore. This additional subsidy of 10% will be on achievement of the projected production and employment generation, as stated by the unit in its Detailed Project Report (DPR).

An allocation of Rs. 17,822 crore has been approved for seven years to meet the committed liabilities of Rs. 12,671 crore and Rs. 5151 crore  for new cases under ATUFS. Budget provision for the financial year 2016-17 is Rs. 1830 crore. However, there is no specific budget provision for any particular segment, including Handloom sector  since the scheme is demand driven.

In another reply the minister informed about the measures taken by the government to provide relief to powerloom industry.

Immediately after the demonetisation initiative, a quick survey of Powerloom units was undertaken in major Powerloom clusters to assess the impact on the decentralised Powerloom Sector.

To address the issues of shortage of new currency, Government has initiated immediate action to enable cashless transactions for payment of wages in the textile sector.

A mission-mode campaign has been launched to promote digital payments and opening of bank accounts for workers by organising a large number of camps in various textile clusters.

Senior Officers were deputed to clusters to oversee the holding of camps in association with the banking sector.

Industry Associations and Councils have also been advised to promote digital payments for enabling cashless transactions.

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