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New ATUFS to benefit textile industry

YarnsandFibers News Bureau 2015-12-31 11:00:00 – Coimbatore

The Cabinet Committee on Economic Affairs on Wednesday gave nod to the introduction of “Amended Technology Upgradation Fund Scheme (ATUFS)” which will replace the existing Revised Restructured Technology Upgradation Funds Scheme (RR-TUFS) for technology upgradation of the textile industry.

A budget provision of Rs 17822 cr has been approved of which Rs 12671 cr is for committed liabilities under the ongoing scheme and Rs 5151 cr for new cases under ATUFS.

Under the new scheme, there will be two broad categories; one for apparel, garment and technical textiles, wherein 15 percent subsidy will be provided over five years on capital investment not exceeding ₹30 crore. The second category, comprising all the other sub-sectors, will get 10 percent subsidy, subject to a ceiling of ₹20 crore.

Textile industry sources showed sign of relief on hearing the news about the new scheme which specifically targets employment generation and export by encouraging the apparel and garment industry, promotion of technical textiles, conversion of existing looms to better technology looms. It will encourage better quality in processing industry and check the need for import of fabrics by the garment sector.

Reacting to the approval of the amended TUFS, Prabhu Damodharan, Secretary, Indian Texpreneurs’ Federation said that it is a timely support and in continuation of the recent initiatives extended by the Centre to the textile sector. The textile industry, particularly those located in Tamil Nadu will benefit from this.

ATUFS will not only give a boost to “Make in India” initiatives in the textiles sector but it will also attract investment and create employment potential.

Also the eligible cases now pending with the Office of Textile Commissioner (TXC) will be provided assistance under the ongoing scheme and the new scheme given prospective effect.

The TXC is also being reorganized and its offices shall be set up in each State. TXC officers will be closely associated with entrepreneurs for setting up units under the new scheme, verifying assets created jointly with the bankers and maintaining close liaison with State government agencies.

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