Small handloom and textile manufacturers are not happy with the Amended Technology Upgradation Fund Scheme (ATUFS) which, they said, could turn out to be disastrous for them and will only benefit big corporate houses.

ATUFS was approved by the Cabinet Committee on Economic Affairs (CCEA) on December 30 to replace the Revised Restructured Technology Upgradation Fund Scheme (RR-TUFS) for technology upgrade.

The amended scheme removed a portion that gives 30 per cent subsidy on textile machines priced between Rs 75 lakh and Rs 5 crore. The amendment forwarded 15 per cent subsidy to machines costing up to Rs 30 crore but in the absence of any mention of any additional benefit to small manufacturers, representatives of Ludhiana’s textile industry bodies have described ATUFS as heavily tilted in favour of large enterprises.

Small manufacturers said that increasing the ceiling on purchase of machinery directly showed that the government wanted to benefit big industrial houses. They argued that TUFS was introduced to benefit small manufacturers but now the amended version would allow big manufacturers to take more advantage. The amendments were confusing as they were not clear on whether old benefits would be withdrawn from the small sector, they claimed.

Manufacturers regretted that there was no clarification from the textiles ministry on the government’s stance towards smaller units.