Southern India Mills’ Association (SIMA) chairman M Senthilkumar has appealed to finance minister Arun Jaitley to allocate adequate funds for clearing TUFS subsidy backlog since September 2014.
In a release, Senthilkumar said with the subsidy pending for more than one and half years, the working capital of the spinning mills has been totally eroded and most of them are incurring cash losses due to a glut in the market.
He pointed out that union budget for 2016-17 has allocated only Rs.1480 crore for TUFS as against the actual requirement of around Rs.7000 crore. He appealed to Jaitley to allocate the balance fund of around Rs.5500 crore to meet the liabilities of backlog period.
Senthilkumar feared several hundreds of textile units are likely to become NPAs as the TUFS subsidy has not been released on time.
