Weaving industry welcomes extension of TUF scheme

The weaving industry, the second largest employer in the district, has welcomed the announcement of concessional interest on loans to weavers and the extension of Technology Upgradation Fund (TUF) scheme in the budget for 2013-14.

A six per cent concessional interest rate was announced for the loans for handloom weavers. It was also proposed that the TUF scheme would continue in the 12th Plan period with an investment target of Rs. 1,51,000 crore. The major focus would be on modernisation of the power loom sector. It was planned to provide Rs. 2,400 crore in 2013-14 for the purpose.

“These two announcements will help fuel the growth of the weaving and textiles sectors in the country. We wholeheartedly welcome these measures,” Confederation of Indian Weaving Industries president M.S. Mathivanan said.

He wanted the Centre to extend the concessional interest rate to the power loom industry as well as it was one of the major employment generators in the country.

Power loom weavers, however, urged the government to continue to allow the import of the second-hand advanced looms into the country.

“The interest rate concession will help the ailing handloom sector in the country,” said Federation of All Trade and Industry Associations of Erode District president N. Sivanesan.

The traders also expressed disappointment over the non-allotment of funds for the Coimbatore — Salem industrial corridor, which was proposed to be established at a cost of Rs. 14,100 crore in the 11th Plan.

Scheme to continue with an investment target of Rs. 1,51,000 crore

Major focus will be on modernisation of power loom sector