Centre plans to invest Rs 5,000 cr in textiles

N M Mugdar, joint textile commissioner, Government of India, said the Centre will invest Rs 5000 crore in the textile industry in the current year.

Mugdar was speaking at an open interactive session on TUFS (technology upgradation fund) and other schemes of the central government. The session was organised by The Southern Gujarat Chamber of Commerce and Industry and The Regional Office of the Textile Commissioner, Ahmedabad, on Wednesday.

"My main intention to come to Surat is to provide information about the various schemes of the central government and how the textile industry could benefit from these. Our aim is to invest a minimum of Rs 5000 crore in the textile industry during the current year. We are trying to chalk out a strategy with regards to this investment," Mugdar said.

On the 20 per cent capital subsidy, Mugdar said: "The government has decided to complete formalities related to the scheme within a month. Once the machinery is installed, the intimation reaches the regional office. The regional office then submits a report whether the machinery has been installed properly, which is scrutinised by the technical department within 15 days and is forwarded to the accounts department," Mugdar said.

"We have received a proposal to release Rs. 25 crore under this scheme. We are trying to ensure that this amount is allotted before August 31. We have held meetings with concerned officials to ensure that the procedure is completed without any undue hassles to the businessmen," Mugdar added.

S P Verma, deputy director, Regional Textile Commissioner Office, Ahmedabad, said: "The central government announces various schemes for the textile industry, but due to the lack of awareness, the industry is unable to avail the benefits. We want maximum number of textile businessmen to take advantage of these schemes, which is why this session has been organised."

Verma also thanked the co-operative banks for their support to the TUF scheme. He assured that the payment of 20 per cent capital subsidy, which took very long earlier, would be made within a very brief time from now onwards.

Chamber president Dinesh Mandalaywala and Surat Art Silk Cloth Manufacturers Association president Arun Jariwala also spoke during the session and brought to the notice of ministry officials the various difficulties faced by the textile industry, and urged them to ensure that the procedures of various schemes are expedited.