Textile ministry wants TUFS extension for five years

The textile ministry is in favour of extending the Textile Upgradation Fund Scheme (TUFS) for another five years after its expiry in March 2007.

"We have made a representation to the finance ministry and also had meetings with the planning commission to extend the tenure of TUFS by another five years," said Textile Commissioner J N Singh.

He said initial estimates prepared by the ministry under TUFS during next five years had put the total investment under the scheme at Rs 1.6 trillion.

The extension of TUFS will be included in the 11th five-year plan proposals, Singh said. He said the end of the multi-fibre agreement under WTO regime in 2005 has given growth opportunities and leverage to Indian textile sector.

He said that due to the growth and demand boom in domestic textile sector, it needs more investment.

"The textile ministry is of the view that continuation of TUFS scheme will help Indian textile sector to leapfrog into the future," Singh said, adding that the sector needs government support for modernisation.

Detailing the investments made under TUFS till now, Singh said that in the last 18 months, an investment of Rs 45 billion has been made in the textile sector.

The textile ministry has also announced a Rs 770 million package for the flood affected textile industry in Surat.

The funds will be directly distributed to the affected units by the textile commissioner. Out of the total relief package, Rs 560 million has been earmarked as calamity relief and a 210 million rupees as interest subsidy for working capital loan package.