Textiles Ministry move to reduce compliance burden for industry, banks

In a move to reduce compliance burden for the textile industry and the banks, the Union Ministry of Textiles has decided to accept only single certificate from the bank concerned instead of multiple documents regarding evidence of payment for claimed machineries under the Amended Technology Upgradation Fund Scheme (ATUFS).

Union Minister of Commerce and Industry, Textiles, Consumer Affairs, Food and Public Distribution Piyush Goyal and Minister of State for Textiles Darshana Vikram Jardosh took part in an inter-ministerial steering committee meeting organised by the Ministry of Textiles with different ministries, departments, textiles industry associations and banks on the scheme.

It was also decided to rationalise GR-related to cases of consortium finance and consider stand alone embroidery machines for the scheme with effect from the inception of the ATUFS.

Of the total settlements under ATUFS since inception, about 61% of claims were settled during the peak of pandemic period (2020-2021).

Mr. Goyal suggested that the Ministry and Textile Commissioner should rework the physical verification mechanism to automated verifications through video conferencing mode. He said provision for self-certification of machinery by units and random verification by the Office of the Textile Commissioner may be considered in place of present physical inspection.

At another virtual meeting on “Technology Gap and Way Forward for Textiles Machinery Manufactures”, Mr. Goyal called for developing 100 Indian textile machinery champions that will be recognised across the world. Interacting with textile machinery manufacturers, he said the industry should work jointly with the government to reduce import dependency for textile machinery.

A modern and upgraded textile machinery eco-system will have a cascading impact on the unorganised segments of the Indian textile industry. The Heavy Industries Capital Goods Scheme is a pilot scheme to support the industry to modernise domestic technologies, he said.

The Minister said there are still challenges such as liquidity, rising costs of raw materials, and freight movement for which the government is taking many steps for the benefit of the textile engineering industry.

Our code of editorial values

This article is closed for comments.
Please Email the Editor

Printable version | Nov 27, 2021 5:06:03 PM |

Next Story