Disbursement of funds under Technology Upgradation Scheme (TUFS) has been delaying, which caused plenty of troubles to the textile industry.
This time also funds will be released one or two months late and the suspension of disbursement has been done from Textile Ministry.
TUFS scheme, which was to end on March 31, 2004 but extended till March 31, 2007 came into force from April 1, 1999 to modernize and promote textile industry.
To supervise this scheme, Textile Ministry has formed two committees under the Chairmanship of Secretary, Textiles, and the Textile Commissioner.
Apart from subsidized loans at 5 percent interest reimbursement under the scheme, TUFS also introduced credit linked capital subsidy scheme at 10 percent for the textile processing sector from April 20, 2005.
Total 5,222 applications were sanctioned for an investment of Rs42,065 crore of which loan provided to the industry was Rs18,634 crore as on end of May 2006.
While the launching of Textile Vision, it was aimed to achieve $50 billion through exports, of which $25 billion was expected from garment sector only and that time TUFS was considered as backbone to fulfill these targets.
In response to the questions asked by the industrialist, Textile Ministry replied that its finance advisor sought examination of performance audits with individual banks and financial institutions.
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