The Indian ministry of textiles began a method described the Technology Up gradation Fund Scheme (TUFS) for creating funds accessible to its textile industry for upgrading the technology of their present factories, and also to set up new firms with state-of-the–art technology for developing their capability and competitiveness in the global market.
The plan is reasonably complete at ease and offers compensation of five percentage points of the normal interest charged by the lending organization on rupee term loan. A five percent exchange variation from the base rate on foreign currency loan is another choice.
A 15 percent credit-linked capital funding (CLCS) is provided for the small-scale textile and jute sector. For the power loom segment a 20 percent CLCS is provided and for acquiring of processing machinery a five percent interest repayment plus 10 percent capital funding is arranged.
The Technology Up gradation Fund Scheme has proved a bonus for the textile industry of India, which has been able to acquire Rs 330 billion as a straight result of this scheme.
With the TUFS and TUFS-like plans the Indian textile industry is gazing ahead to an investment of around Rs 1400 billion by 2010 and aspiring to tap exports figure of $40 billion by 2010.
The Indian textile segment is set to twofold its share in global textile trade from the current four percent to eight percent by 2008. In the budget for 2006-2007, the share to the Technology Up gradation Fund Scheme has been enhanced from Rs 4.4 billion to Rs 5.4 billion.
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