The textile units in north which are yet to recover from the impact of global financial meltdown find it hard to pursue sustainable new projects in the absence of special schemes like Technology Up-gradation Fund (TUF).
Commenting upon the withdrawal of TUF scheme, Ashish Bagrodia, president, Northern India Textile Mills Association (NITMA) said, “The sudden suspension of the TUF Scheme has come as a shock to the entire textile industry and all further investments in the textile Industry has come to a halt”. The Ministry of Textiles had introduced the TUF in 1999, to initiate investments in the beleaguered textile industry and had extended the scheme till 2012. However, from June 29, 2010, the government suddenly discontinued this scheme and banks were told not to clear any further investments under this scheme.
“Even the funds allocated in the budget 2010-11 have not been completely released to the industry and the industry has received funds only till December 2009”, said Bagrodia. The success of this scheme can also be judged from the fact that there has been hardly any default by the Textile Industry on loans taken from banks under the TUF Scheme. It is very important that the momentum on investments in this industry is not lost, he added.
It is one of the most successful schemes of the Government of India which has brought in an investment of Rs 207,350 crore in the textile sector and has created huge employment for the unskilled and unemployed through the entire textile value chain.