Textile technology upgradation scheme runs out of funds

The Rs66,275-crore Technology Upgradation Fund Scheme (TUFS) for textile industry has run into deficit following an overwhelming demand from the industry for subsidy on capital cost for modernising operations, textiles minister Dayanidhi Maran said.

The textile ministry had made a provision of Rs2,890 crore and released subsidy of Rs2,546 crore under the TUFS on 6 August 2009, Maran said at a meeting of the Parliamentary consultative committee in New Delhi yesterday.

"To clear the subsidy till December 2009, we will be requiring additional amount of Rs1,884 crore at RE (revised estimate) stage 2009-10," he added.

"This is for the first time that such a large amount of subsidy has been released in a single tranche and the amount was credited to the bank accounts of beneficiaries in the record time of 72 hours (3 working days)," Maran pointed out. 

Maran said his ministry has disbursed Rs66,275 crore under the TUFS from the inception of the scheme on 1 April 1999, till 30 June 2009.

TUFS has stimulated additional investments of Rs1,79,834 crore and benefited 25,809 textiles units, including 18,266 small-scale units, he said.