Technology Upgradation Fund Scheme (TUFS) has been modified. This information was given by the Minister of State for Textiles, Shri E.V.K.S. Elangovan, in the Rajya Sabha, in a written reply to a question by Shri T.T.V. Dhinakaran.
The Minister further informed that the benefits available under the modified scheme are as follows:
i). The Scheme provides interest reimbursement on spinning machinery @ 4%. However, all the remaining sub-sectors covered under the scheme get interest reimbursement @ 5%.
ii). The Scheme also provides coverage for foreign exchange rate fluctuation not exceeding 5%. However, for the spinning machinery the coverage is 4%.
iii). The Scheme provides an additional option to the powerlooms units to avail of 20% Margin Money subsidy under TUFS in lieu of 5% interest reimbursement on investment in TUF compatible specified machinery subject to a capital ceiling of Rs. 200 lakh and ceiling on subsidy Rs.20 lakh.
iv). The Scheme provides 15% Margin Money subsidy 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 and ceiling on subsidy Rs.15 lakh.
v). The Scheme provides 5% interest reimbursement plus 10% capital subsidy for specified processing machinery, garmenting machinery and machinery required in manufacture of technical textiles.
vi). The Scheme provides 25% capital subsidy on purchase of the new machinery and equipments for the pre-loom & post-loom operations, handlooms/up-gradation of handlooms and testing & Quality Control equipments, for handloom production units.
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