Prime Minister's Office (PMO) and Planning Commission objected extension of TUFS beyond the March 31 deadline this year.
But Ministry of Textiles is insisting that scheme be extended for next five years and it should also be incorporated in the 11th Five Year Plan. Ministry is persisting on the extension as TUFS is required for growth of textile industry.
This scheme enables private firms to get financial aid from Government, hence both parties were against the extension and they wanted infrastructure subsidy under Scheme for Integrated Textile Parks (SITP) to substitute TUFS which was initiated in 1999.
National Manufacturing Competitiveness Council (NMCC) has voiced its support for textiles ministry. Decision for extension will be taken after various HLCM meetings and judgment by finance ministry.
Lenders can provide maximum five percent interest subsidy for technological upgrading and modernization under TUFS. Financial organizations have granted loans worth Rs12,673 crores till now under TUFS for ventures needing Rs47,217 crore net investment.
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