BUSINESS

Textile industry seeks extra funds for TUFS

The textile industry has sought additional allocation for the Technology Upgradation Fund Scheme (TUFS) to clear the subsidy amount pending for earlier commitments under the scheme and also for new investments this year.

Prem Malik, Chairman of Confederation of Indian Textile Industry, told presspersons here on Friday, The Government should provide Rs.3,000 crore additional allocation for the scheme for 2015-16. Textiles is a capital intensive industry and the two per cent to five per cent subsidy on interest available through the scheme helps the industry improve its competitiveness.

The scheme is valid till 2017 and the Government should provide adequate allocations for it. The industry is facing several challenges and during the last three years, investments were to the tune of Rs.27,000 crore to Rs.30,000 crore. Investments are expected to be minimal if the scheme is not there as the capital cost is high for the textile and clothing sector and “We need an element of rebate on interest,” he said.

Sources in the industry added that nearly 35 per cent of textile and clothing production in the country is exported. The scheme helps the industry improve its efficiency and competitiveness by upgrading the technology.