The centre in its recently announced Rs 6,000-crore special package for the textile sector aimed at generating 10 million jobs and boost export by a cumulative 30 billion US dollar over three years. But disbursement of funds under the Technology Upgradation Fund Scheme (TUFS) of the textiles ministry shows a dull picture.

Against Rs 24,000 crore of disbursements under TUFS in 2008-09, it was only Rs 11,000 crore in 2014-15 from a total allocation of about Rs 17,800 crore under the various TUFS – modified, restructured and revised-restructured. From 2013, investments have come down. TUFS disbursement by the government has also reduced subsidies, K Selvaraju, secretary-general of the Southern India Mills Association said.

The disbursement excluded the spinning industry, where the potential is high for new investment.

The earlier Budget saw an allocation of Rs 1,480 crore, as against a backlog of Rs 8000 crore. Only certain mills received funds, till December 2015, a source, on condition of anonymity said.

The apparel industry wants hastening of TUFS disbursement, especially to spinning, weaving and fabric making units, to boost the overall export. As apparel exports is facing stiff competition from Bangladesh and Vietnam, growing at 14 and 11 per cent annually; India’s is eight percent only. Under the new textile minister, all these issues will be sorted out, Selvaraju hoped.