Thaindian News

New Delhi, May 1(ANI): The Central government has restructured the Technology Upgradation Fund Scheme (TUFS) - the flagship scheme of Union Textiles Ministry for upgradation of technology in the textile and jute sectors.

The Textiles Ministry has issued the government resolution on Restructured Technology Upgradation Fund Scheme for the period April 28 to March 31, 2012, (both the days inclusive) with an overall subsidy cap of Rs.1972 crore during the period.

The government resolution lays down the financial and operational parameters and implementation mechanism for the Restructured TUFS.

The objective of the present scheme is to leverage investments in technology upgradation in the textiles and jute Industry, with a special emphasis on balanced development across the value chain.

“The major objectives of the present restructured TUFS scheme are as follows:- (a) address the issues of fragmentation and promote forward integration by providing five percent IR for spinning units with matching capacity in weaving/knitting/processing/ garmenting; (b) promoting investments in sectors with low investment like processing; (c) reducing the repayment period to seven years with two years moratorium to promote financial efficiency; (d) Technology upgradation in weaving by providing higher capital subsidy for establishment of new shuttle less looms,” a Textiles Ministry statement said.

The scheme will cover only automatic shuttleless looms of 10 years’ vintage and with a residual life of minimum 10 years.

The value cap of the automatic shuttleless looms will be decided by the Technical Advisory-cum-Monitoring Committee (TAMC).

The scheme will be administered with a two stage monitoring mechanism.

“The sectoral caps shall be reviewed for modification by the IMSC (Inter Ministerial Steering Committee), based on the recommendations of TAMC,” the statement said. (ANI)