Textiles Minister K. S. Rao, on Thursday, announced that the government would soon come out with a modified Technology Upgradation Fund (TUF) scheme which would make provision for hike in interest subsidy on power looms from 5 per cent to 6 per cent.
Mr. Rao made this announcement while releasing a study on “Benchmarking of the textile production cost in India vis-à-vis Bangladesh, China, Egypt, Indonesia, Pakistan &Turkey’’ undertaken by Zurich-based consulting firm GHERZI and Cotton Textiles Export Promotion Council of India (Texprocil).
Elaborating further on the issue, Mr. Rao said the modified TUF would be rolled out soon with necessary changes to benefit the power looms.
He said the focus was going to be assigned to the power loom sector which would help shore up the textile competitiveness of India. He wanted the industry to focus on modernisation of mills to up the export performance which would bring lasting solutions to worsening current account deficit.
“We are now proposing to increase the interest subsidy for power loom to 6 per cent,” he said. Under TUFS, the government subsidises 5 per cent of interest payments on loans sanctioned.