The government has decided to provide subsidy to the paper industry on purchase of capital goods for modernising technology, a senior official in the Department of Industrial Policy and Promotion (DIPP) said.
“The government will soon extend the benefits of Technology Upgradation Fund (TUF) to the paper industry to fight the increasing incidence of technology obsolesce in the industry,” DIPP Joint Secretary Renu Sharma said at a conference yesterday.
The benefits of the TUF scheme is likely to be unveiled for the paper industry in the next financial year.
The Rs 16,000-crore Indian paper industry, which is investing on capacity expansion, pollution control measures and environmental management plans, was seeking a technology upgrade fund on the lines of the scheme available to the textile industry.
On the shortage of raw material faced by the pulp and paper industry, Sharma said the government was working on a proposal to help the segment.
