Technology Upgradation Fund Scheme (TUFS) may get an extension beyond the March, 31, 2007 deadline under severe pressure from the textile industry and may be incorporated in the 11th five year plan which coincides with the TUFS deadline.
Textile Ministry, under pressure, may extend the scheme with some modifications that include a revision of interest rate which is 8.5 percent right now resulting in around one percent interest rate with inflation rate stationed at 4.5 percent.
The subgroup within the ministry of textile is working out the modalities and is likely to submit its report to the working group chaired by Textile Secretary D P Singh by the end of August; the group will submit proposal to the Planning Commission by September end.
Having received a dull response earlier, the scheme became a hit from 2003-04 onwards and funds of Rs15,032 crore were sanctioned and the amount is likely to reach Rs30,000 crore this year.
Power loom sector was also included in the TUFS with an upfront capital subsidy of 20 percent provided from October, 2005.
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