Govt Approves A-TUFS for Textile Industry

Govt Approves A-TUFS for Textile Industry

The government has approved the ‘Amended Technology Upgradation Fund Scheme (A-TUFS)’ in place of ‘Revised Restructured Technology Up-gradation Fund Scheme (RRTUFS)’ for technology up-gradation of the textile industry with one time capital subsidy for eligible bench-marked machinery for a period of seven years from 2015-16 to 2021-22, informed by the textiles minister, Smriti Irani in a written reply to Rajya Sabha.

The ministry has also notified the ‘Scheme for Production and Employment Linked Support for Garmenting Units (SPELSGU)’ under A-TUFS to incentivise production and employment generation in the garment sector.

The additional incentive of 10 per cent will be provided to the garmenting units which would be availing the 15 per cent Capital Investment Subsidy (CIS) under A-TUFS for the installation of eligible benchmarked machinery after a period of three years.

The cap on capital investment subsidy for the eligible machinery in the garmenting units has therefore been enhanced from Rs. 30 crore which was the cap under ATUFS, to Rs. 50 crore. This additional subsidy of 10 per cent will be on achievement of the projected production and employment generation, as stated by the unit in its Detailed Project Report (DPR).

An allocation of Rs. 17,822 crore has been approved for seven years to meet the committed liabilities of Rs. 12,671 crore and Rs. 5151 crore  for new cases under A-TUFS. However, there is no specific budget provision for any particular segment, including handloom sector since the scheme is demand driven.

Apparel and Textile News, Apparel Talk, Indian Apparel