Technology Upgradation Fund Scheme should be discontinued with the end of Eleventh Plan as its continuation may hamper the investment process for modernization of textile industry.
Industry is trying to find out alternatives for the Planning Commission to consider its decision of continuing TUFS till 2010, informed Chairman of Southern India Mills Association S V Arumugam.
Confederation of Indian Textile Industry (CITI) is estimating the size of total fund allocated under this scheme.
The scheme is proposed to stop because Finance Ministry has not been provided the estimation of fund supposed to utilize by textile industry, informed Arumugam.
Ministry of Textile has ordered the Textile Commissioner to stop all sanctioning in its circular dated July 6, because reimbursing the interest subsidy provided under the scheme had increased demand by three times.
Ministry of Finance has ensured to provide funds for TUFS, Textile Ministry should provide proper estimation of the funds required to sector, Arumugam said.
To attain the investment potential of Rs140,000 crore by 2010 and textile output of $85 billion, TUFS continuation is essential without any disruption, Arumugam stated.
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