The Government at the highest levels may not grant an extension to the Textile Upgradation Fund Scheme (TUFS) has sent shockwaves in the textile industry both amongst the manufacturers and exporters.
Expressing deep concern Shri Prem Malik, Chairman, Texprocil stated that the TUF Scheme launched in 1999 had provided a “fresh lease” of life to the textile industry which was now coming into its own, after facing severe restrictions for years both in the domestic and international areas.
The industry has shown an exceptional turn around during the last few years owing to the progressive policies of the Government, especially the TUF Scheme.
For instance Shri Malik stated that Yarn production has increased without significant increase in operational spindleage, indicating thereby that funds under the TUF Scheme have been utilized for modernization and increasing productivity.
Similarly production of fabrics had also recorded a CAGR of almost 4.5 percent during he period 2002-2006 mainly on account of the TUF Scheme.
The processing sector had also gained under the TUF Scheme with almost 22.3 percent of the total investments going into this sector during the period April-September 2006.
With the Home Textiles and Ready Made Garment segments showing excellent growth, there is an urgent need to strengthen the spinning, weaving, processing, and stitching components of the textile industry. Any move to discontinue the TUF Scheme will only prove disastrous at this stage.
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