Government approved the continuation of the Technology Upgradation Fund Scheme (TUFS) for the entire period of the Eleventh Five Year plan (2007-12).
The decision of the Government places special thrust on garmenting, technical textiles and processing segments of the textiles industry in view of their potential for value-addition and employment generation.
This decision is expected to help the textile sector to achieve the targeted growth rate of 16% and make an investment of Rs. 150,600 crore in the Plan period.
The salient features of the decision are as follows:
• Provision of 4% interest reimbursement for spinning machinery.
• Retention of the provision for 5% interest reimbursement for all the remaining sectors.
• Retention of the provision to purchase second hand machinery for shuttleless powerlooms.
• Margin Money subsidy @ 20% to the powerloom units in lieu of 5% interest reimbursement on investment in TUF compatible specified machinery subject to a capital ceiling of Rs. 200 lakh from Rs. 100 lakh with subsidy ceiling at existing level. A minimum of 15% equity contribution from beneficiaries will be ensured.
• Margin Money subsidy @ 15% for SSI textile and jute sector in lieu of 5% interest reimbursement on investment in TUF compatible specified machinery subject to a capital ceiling of Rs. 200 lakh from Rs. 100 lakh with subsidy ceiling at existing level. A minimum of 15% equity contribution from beneficiaries will be ensured.
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