Indian Texpreneurs Federation (ITF) today thanked the Centre for coming out with the Amended Technology Upgradation Fund (TUF) Scheme of Rs 17,822 crore for the textile sector.
"By this timely support, the textile industry, particularly in Tamil Nadu, will get major benefit because major TUF pending was towards Tamil Nadu textile industry," ITF Secretary Prabhu Dhamodharan said in a statement.
The Union Cabinet today approved the Amended TUF of Rs 17,822 crore to textile sector-- Rs 12,671 alloted towards committed liabilities and Rs 5,151 crore for new schemes.
Under the new scheme, there will be two broad categories -- apparel, garment and technical textiles -- where 15 per cent subsidy would be provided on capital investment, subject to a ceiling of Rs 30 crore for entrepreneurs over a period of five years.
The remaining sub-sectors would be eligible for subsidy at a rate of 10 per cent, subject to a ceiling of Rs 20 crore on similar lines.
Prabhu said the government, in the last few months, had announced much needed support initiatives like exports incentive and Interest Equalisation Scheme for fabrics and garments.
With all these support measures, the textile industry is confident about moving up the value chain and demonstrate its commitment for 'Make in India' initiative, he added.
Meanwhile, Southern India Mills' Association Chairman M Senthilkumar said the Amended TUFS would enable the textile industry to ease their financial position and also plan investments.
