The
Cabinet Committee on Economic Affairs, chaired by the Prime Minister Shri
Narendra Modi has approved the introduction of "Amended Technology
Upgradation Fund Scheme (ATUFS)" in place of the existing Revised
Restructured Technology Upgradation Fund Scheme (RR-TUFS),for
technology upgradation of the textiles industry, with effect from the date of
notification of the scheme.
The
new scheme specifically targets:
a. Employment
generation and export by encouraging apparel and garment industry, which will
provide employment to women in particular and increase India’s share inglobal
exports.
b. Promotion
of Technical Textiles, a sunrise sector, for export and employment
c. Promoting
conversion of existing looms to better technology looms for improvement in
quality and productivity
d. Encouraging better
quality in processing industry and checking need for
import of fabrics by the garment sector.
The
amended scheme would give a boost to “Make in India” in the textiles sector; it
is expected to attract investment to the tune of one lakh crore rupees, and
create over 30 lakh jobs.
A
budget provision of Rs.17,822 crore has been approved, of which Rs. 12,671
crore is for committed liabilities under the ongoing scheme, and Rs. 5,151
crore is for new cases under ATUFS.
All
cases pending with the Office of Textile Commissioner which are complete in all
respects, shall be provided assistance under the ongoing scheme and the new
scheme will be given prospective effect.
Office
of Textile Commissioner (TXC) is being reorganised; its offices shall be set up
in each state. Officers of the TXC shall be closely associated with
entrepreneurs for setting up the industry, including processing proposals under
the new scheme, verifying assets created jointly with the bankers and maintaining
close liaison with the State Government agencies.
The
implementation of the scheme would be executed and monitored online under
iTUFS, launched in April, 2015.
Under
the new scheme, there will be two broad categories:
i.
Apparel,
Garment and Technical Textiles, where 15 percent subsidy would be provided on
capital investment, subject to a ceiling of 30 crore rupees for entrepreneurs
over a period of five years.
ii.
Remaining
sub-sectors would be eligible for subsidy at a rate of 10 percent, subject to a
ceiling of Rs.20 crore on similar lines.
Background
The
Technology Upgradation Fund Scheme was introduced by the Government in 1999to
facilitate new and appropriate technology for making the textile industry
globally competitive and to reduce the capital cost for the textile industry. A
sum of Rs. 21,347 crore has been provided as assistance to the industry during
1999 – 2015. It has led to investments worth Rs. 2,71,480 crore, and created
job opportunities for nearly 48 lakh people.
The
scheme was earlier amended for continuation during the 12th Plan. A sum
of Rs.11,952 crore was provided for attracting investment of Rs. 1,51,000 crore
during the period 2012-2017. Out of this, Rs. 9,290 crore was meant for
committed liabilities and Rs. 2,662 crore for new investment. The amount
provided for new investment has been exhausted and therefore the Ministry of Finance
was approached for enhancing the allocation.The amendments in the scheme are
expected to plug the loopholes in the earlier scheme and improve Ease of Doing
Business. It will also give a boost to employment generation and exports in the
textile sector in a big way.
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AKT/VBA/SH