The technology upgradation fund scheme (TUFS), which ended in March, will be further extended, but under the 12th Five-Year Plan. This was stated by Anand Sharma, minister of commerce, industry and textiles, in a press conference after the All India Powerloom Board Meeting.
“Of the Rs 75,000-crore offtake under TUFS so far, the powerloom sector’s offtake is less than Rs 7,000 crore,” said Sharma.
The ministry plans to enhance the powerloom subsidy offtake under TUFS to Rs 1,000 crore over the next five years and subsidy will also be extended to second-hand machinery of less than 10 years under the scheme.
“We are targeting an upgradation of 200,000 looms out of the present 2.3 million under the 12th Five-Year Plan, 26 per cent assistance under TUFS of the weaving sector,” said Sharma.
The scheme was introduced in 1999 and in 2010-11, a modified TUFS was reintroduced with an addition of Rs 1,972 crore. But due to uncertain economic conditions, both on domestic and global fronts, subsidy worth Rs 200 crore came in.
For infrastructure upgradation, the ministry will continue to support cluster approach in the 12th Five-Year Plan.
Meanwhile, the textile ministry extended benefits of the health insurance cover for medical needs of powerloom workers and their families as an addition to the ongoing group insurance scheme decided at the first All India Powerloom Board meet. The year 2013-14 is to be declared as the Year of Weavers to give an added thrust to the sector.
