New Delhi, Dec. 30 (ANI): The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, on Wednesday 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.
The new scheme specifically targets employment generation and export by encouraging apparel and garment industry, which will provide employment to women in particular and increase India’s share in global exports.
Promotion of Technical Textiles, a sunrise sector, for export and employment, and promoting conversion of existing looms to better technology looms for improvement in quality and productivity, and encouraging better quality in processing industry and checking need for import of fabrics by the garment sector.
The amended scheme would give a boost to ‘Make in India’ in the textiles sector, and it is expected to attract investment to the tune of one lakh crore rupees, and to create over 30 lakh jobs.
A budget provision of Rs.17,822 crore has been approved, of which Rs. 12,671 crore is for committed liabilities under the ongoing scheme, and Rs. 5,151 crore is for new cases under ATUFS.
All cases pending with the Office of Textile Commissioner, which are complete in all respects, will be provided assistance under the ongoing scheme and the new scheme will be given prospective effect.
The Office of Textile Commissioner (TXC) is being reorganised, and such offices will be set up in each state. Officers of the TXC shall be closely associated with entrepreneurs for setting up the industry, including processing proposals under the new scheme, verifying assets created jointly with the bankers and maintaining close liaison with the State Government agencies.
The implementation of the scheme would be executed and monitored online under iTUFS, launched in April 2015.
Under the new scheme, there will be two broad categories – 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; and 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.
The Technology Upgradation Fund Scheme was introduced by the government in 1999 to facilitate new and appropriate technology for making the textile industry globally competitive and to reduce the capital cost for the textile industry. (ANI)