chapter viii wool & wollen textiles industry - Ministry of Textiles

ministry of textiles
The employment generation in cotton/
man-made fibre /Yarn Textile Mill Sector
(including SSI spinning and excluding
weaving units) textile industry projected
for the terminal year of the 11 th plan is
1.40 million numbers.
TECHNOLOGY UPGRADATION
FUND SCHEME (TUFS)
The Technology Upgradation Fund
Scheme (TUFS) was launched on 01.04
1999, for a period of five years, and was
subsequently extended upto March 31,
2007. The Scheme provides for interest
reimbursement/capital subsidy/Margin
Money subsidy and has been devised
to bridge the gap between the cost of
interest and the capital component to
ease up the working capital requirement
and to reduce the transaction cost, etc.
The Scheme is an important tool to infuse
financial support to the textiles industry
and help it capitalize on the vibrant and
expanding global and domestic markets,
through technology upgradation, cost
effectiveness, quality production,
efficiency and global competitiveness.
During its initial years, the progress of
the Scheme was moderate and it gained
momentum from 2004-05 onwards. The
Scheme has been further extended
till 2012 with modified financial and
operational parameters which focus
on additional capacity building, better
adoption of technology, and provides for
a higher level of assistance to segments
that have a larger potential for growth,
like garmenting, technical textiles, and
processing. The scheme is administered
through 3 nodal agencies, 36 nodal banks
and 108 co-opted PLIs. The scheme
since inception has propelled investment
of more than Rs. 2,10,000 crores. An
amount of Rs. 13637.53 crore has been
released towards subsidy under the
Scheme as on 31.10.2011.
With effect from 28.04.2011, Restructured
TUFS has been approved with the
enhanced 11 th Plan allocation under TUFS
from Rs. 8000 crore to Rs. 15404 crore.
The Restructured TUFS ensure focus of
interventions on hitherto slow growing
sectors like weaving, encouragement
to forward integration and tighter
administrative controls and monitoring of
the scheme. The Restructured TUFS is
expected to trigger additional investments
of over Rs. 46,900 crore during the
balance period of the XI th Five Year Plan.
Progress of TUFS
The progress of TUFS is steadily going
up which is evident from the data given
at table 3.4.
Progress of (20% CLCS)
20% Credit Linked Capital Subsidy
Scheme under CLCS-TUFS for power
loom units had been launched on 6 th
November 2003. Under the scheme,
Rs. 223.27 crores has been disbursed
to 3033 cases as on 30.11.2011 as per
details given at table 3.5.
SCHEME FOR INTEGRATED
TEXTILE PARKS (SITP)
Scheme for Integrated Textiles Parks
was approved in the 10th Five Year Plan
to provide the industry with world-class
infrastructure facilities for setting up their
textile units by merging the erstwhile
‘Apparel Parks for Exports Scheme
(APES)’ and ‘Textile Centre Infrastructure
Development Scheme (TCIDS)’.
Scope of the Scheme
The scheme targets industrial clusters/
locations with high growth potential,
which require strategic interventions
by way of providing world-class
infrastructure support. The project cost
covers the cost of common infrastructure
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