Technology fund for textiles enhanced to Rs15,886 crore in 12th Plan

The Technology Upgradation Fund Scheme (TUFS) for the textile sector would continue in the XII Plan with an enhanced allocation of Rs15,886 crore even as the central government was working on a package for powerloom and silk sectors, commerce and textile minister Anand Sharma said today.

The outlay for TUFS in the XI Plan was Rs12,000 crore. Under the scheme, government provides subsidies to the industry for modernisation by installing new machinery and adopting upgraded technology. The scheme is very popular among textiles segments such as spinning, cotton ginning and pressing, garments and weaving.

Speaking on the sidelines of the Inauguration of `Tex Trends India 2012' Sharma, said the government was concerned over the developments in the powerloom and silk sectors, and was working on financial packages for these sectors.

The industry has been hit by high raw material prices, high interest rates, besides demand slowdown in major markets such as Europe and the US.

The government had announced a Rs35,000-crore debt restructuring package for the ailing textile industry, which has been faced with massive unemployment and shutdown of business.

''We are looking at all issues of the industry, including the restructuring package which has been worked out after discussions with the stakeholders of the industry, the finance ministry and the RBI. It will be implemented in a time-bound manner,'' Sharma said.