Powerloom weavers affiliated to the Southern Gujarat Chamber of Commerce and Industry (SGCCI) have submitted a memorandum to textile commissioner Kavita Gupta demanding restoration of 30 per cent subsidy in the Amended Technology Upgradation Fund Scheme (A-TUFS) to ensure that the Make in India initiative is a success.

Powerloom weavers in the country’s largest man-made fabric (MMF) hub in Surat have been unhappy with A-TUFS announced by the textiles ministry on January 13, which reduced subsidy from 30 per cent to just 10 per cent on capital investment.

SGCCI office-bearers said there was an increase in investment under the Restructured TUFS and Revised Restructured TUFS by 20 per cent and 30 per cent respectively. However, A-TUFS policy is so unattractive that seven applicants whose proposals were sanctioned by the ministry have withdrawn their applications to install shuttle-less powerloom machines.

SGCCI president B S Agarwal said, “The A-TUFS is a big setback for the sector. We have requested the ministry of textiles to come up with subsidy revision and increase it from 10 per cent to 30 per cent.”

Agarwal said the country’s largest embroidery sector is based in Surat with around 1.5 lakh units. But neither the embroidery units nor the zari sector is covered under A-TUFS. The SGCCI has requested the textiles ministry to include both sectors in the scheme.