Government releases Rs2,546 crore subsidy to 12,514 textile units

Union minister of textiles Dayanidhi Maran today announced the release of subsidy of Rs2,546 crore to 12,514  textile units under the Technology Upgradation Fund Scheme (TUFS). The amount will be credited to the bank accounts of beneficiaries in a record time of 72 hours (3 working days), Maran said at a press conference.

This is for the first time that such a large amount of subsidy has been released in a single tranche and, with this release, the subsidy will be cleared up to 30 June 2009, he said.

The minister also announced the constitution of 41-member working group under the chairmanship of secretary (textiles) to formulate the National Fibre Policy. The working group has representatives from the government, trade and user industry, and it will submit its recommendations within three months, he added.

Contrary to global trends, Indian textiles industry continues to be predominantly cotton based, with a 60:40 ratio of cotton to manmade fibre, while the reverse is the case in developed countries, Maran informed the House.

National Fibre Policy
The framing of a national fibre policy in a time bound manner has been engaging the attention of the government and stakeholders, and this was subsequently reiterated in the 'agenda for 100 days', Maran said.

The working group will examine ways to promote use of fibres equitably as to ensure balanced growth of the entire textiles chain, keeping in view the future trends and the present consumption pattern both for domestic and export markets, said the textiles minister.