Cabinet approves technology to upgrade powerlooms
The Cabinet Committee on Economic Affairs, on Thursday, gave its approval for implementation and continuation of Technology Upgradation Fund Scheme (TUFS) during the XII Plan period with a major focus on powerlooms with a total outlay of Rs.11,900 crore. The scheme is aimed to promote indigenous manufacturing of textile machinery. Interest reimbursement (IR) on second hand imported shuttleless looms shall be reduced from 5 per cent to 2 per cent. On the other hand, for new shuttleless looms, capital subsidy would be raised from 10 per cent to 15 percent, IR from 5 per cent to 6 per cent, and margin money subsidy from 20 per cent to 30 per cent with an increase in subsidy cap from Rs. 1 crore to Rs. 1.5 crore.
The capital subsidy for handloom and silk sectors would be increased from 25 per cent to 30 per cent. In addition to this, margin money subsidy cap would be increased from Rs.45 lakh to Rs. 75 lakh in respect of MSME and jute sectors. Sectoral cap of 26 per cent will be applicable only for the spinning segment and sectoral caps for all other segments have been removed to enable balanced growth across the value chain.
Focus will be on powerlooms with a total outlay of Rs.11,900 crore