The central government in its recently announced a Rs 6,000-crore package for the sector, aim of generating 10 million jobs and boost export by a cumulative $30 billion over three years. But disbursement of funds under the Technology Upgradation Fund Scheme (Tufs) of the Union textiles ministry shows a dull picture.

Against Rs 24,000 crore of disbursements under Tufs in 2008-09, it was only Rs 11,000 crore in 2014-15 from a total allocation of about Rs 17,800 crore under the various Tufs —modified, restructured and revised-restructured. From 2013, investments have come down. Tufs disbursement by the government has also reduced subsidies, said K Selvaraju, secretary-general of the Southern India Mills Association.

The disbursement excluded the spinning industry, where the potential is high for new investment.

The earlier Budget saw an allocation of Rs 1,480 crore, as against a backlog of Rs 8000 crore. Only certain mills received funds, till December 2015, said a source, on condition of anonymity.

The apparel industry wants hastening of Tufs disbursement, especially to spinning, weaving and fabric making units, to boost the overall export. As apparel exports is facing stiff competition from Bangladesh and Vietnam, growing at 14 and 11 percent annually; India’s is eight percent only. Selvaraju said that under the new minister, they are hopeful all these issues will be sorted out .