The restructured Technology Upgradation Fund Scheme (TUFS) for the textile sector will encourage investments in the weaving sector, according to M. Senthil Kumar, former Chairman of the Powerloom Development and Export Promotion Council.
He told this correspondent on Tuesday that an imported, first-hand shuttleless loom (air jet or projectile) will cost about Rs.25 lakh to Rs.30 lakh.
The increase in the capital ceiling under the margin money scheme would encourage the weaving sector to go in for more number of looms and would boost large-scale investments.
So far, most of the investments were into second-hand looms.
J. Thulasidharan, Chairman of the Southern India Mills' Association, said TUFS had encouraged the spinning sector to upgrade technology and today, India produced quality yarn.
“We need government support to maintain our competitiveness in the international market. Production of quality yarn is essential for export of value-added textile products too,” he said.
