Textile industry eager to use TUF

Caught between the devil and the deep sea, the Indian textile industry is gearing up to utilise funds worth Rs 1,972-crore earmarked under the revived TUF (technology upgradation fund) Scheme.

The scheme, suspended abruptly on June 28, 2010, by the government due to exhaustion of funds, has been reintroduced and will remain in place till March 2012, which will culminate with the 11th five-year plan.

Talking to Business Standard, V K Ladhiya, chairman, Indian Spinners Association said the industry is demanding the scheme to be implemented with effect from June 28, 2010 and the representation is being made to the Ministry of textiles through the Confederation of Indian Textile Industry. He added the loans raised during June 28, 2010 to April 28 should also qualify for the concessions under TUFS.

 

The entire value chain of the textile sector (spinning, weaving, processing, dying and garmenting) is passing through a rough patch as the demand dried up after February 2011 due to speculation in cotton prices.