Textile ministry for extending technology upgradation fund

The textile ministry is in favour of extending the Technology Upgradation Fund Scheme (TUFS) beyond 2007.

"I would speak with the finance minister, if the need to extend the scheme arises," textile minister Shankar Sinh Vaghela said today at the inauguration of the three day Apparel Machinery Exposition.

He has asked the industry association to submit a proposal for the same.

Vaghela said that the government had already disbursed Rs 18,000 crore under TUFS, which provides a reimbursement of 5 per cent on the interest charged by the lending agency on a project of technology upgradation or on investments in common infrastructure.

The Apparel Export Promotion Council in its memorandum submitted to the textile minister has demanded to extend TUFS till March 2010.

The extension of TUFS will give the industry more time to modernise, especially as the US-imposed textile quotas on China last till 2008, according to the memorandum.

AEPC has also recommended that the benefit provided to processing machinery be extended till March 31, 2007. The 10 per cent capital subsidy and 5 per cent interest subsidy provided to this segment come to an end on March 31, 2006.