FM To Consider FICCI’s Suggestions

FM To Consider FICCI’s SuggestionsFinance minister Aurn Jaitley has assured the Textiles Committee of the Federation of Indian Chambers of Commerce and Industry (FICCI) that he would consider its suggestions on proposed revised Technology Upgradation Fund Scheme (TUFS), interest subvention and duties on man-made fibre.

The committee led by its chairman Shishir Jaipuria submitted a representation to the finance minister expressing its immediate concerns related to the textiles sector.

In the representation, Jaipuria has urged for adequate allocation of funds under the TUFS, consideration of sanctioned loans under the existing TUFS and not the proposed new scheme of TUFS, reducing duties on man-made fibres and restoration of interest subvention for exporters.

FICCI said exports of textiles and apparel from India have increased steadily over the last few years though, India’s export performance has been below expectations in the post-quota period. However, looking at the global scenario now where China is vacating space in manufacturing, there is no reason why India, provided it takes the necessary steps, cannot achieve 20 per cent growth in exports over the next decade.

FICCI said TUFS has been very helpful in promoting investments in the sector, and is the only support for the Indian textile industry after export incentives been rationalised. The budget allocation for TUFS for the current year has been reduced vis-à-vis last year from Rs 1840 crore to Rs 1520 crore. “This is grossly inadequate for the sector given the pending and future demands of the industry,” FICCI said in its representation. It requested the finance minister to consider increasing the allocation under the scheme to Rs 5000 crore.

On proposed restructured TUFS, the committee said the industry is apprehensive that under the current review of the TUFS term loans already sanctioned would be considered in the new scheme. This would affect the projects that are in pipeline. Therefore, it requested that the new scheme whenever formulated and ready for launch should be applicable for new proposals received by the banks thereafter and all sanctioned term loans should be considered under the guidelines of existing TUFS scheme.

Reference Link