TUFS for textiles to be extended beyond 2007

Prime minister Manmohan Singh has supported the continuation of the technology upgradation fund scheme (TUFS) for the textile sector beyond March 2007.

This was disclosed by commerce and industry minister Kamal Nath at the 48th annual general meeting of Northern India Textile Mills Association.

TUFS provides interest subsidy for modernisation and is slated to expire in March 2007 and the industry has been pushing for extension of the scheme in the 11th Five-year Plan period.

Nath said the governement had taken note of industry's need TUF for modernisation and expansion. However, he said that while extending the scheme it could be modified with. The inputs provided by the industry.

Nath also said that the textile industry would be the major beneficiary in all the preferential and free trade agreements as five years down the line tariffs would not be an issue.