January 10, 2002

`19'

    In order to modernise powerloom, knitting and hosiery sector of textiles, Government has decided to provide an option to the small scale textile and jute industries to avail of either 12% Upfront Credit Linked Capital Subsidy or the existing 5% interest reimbursement under the Technology Upgradation Fund Scheme (TUFS).

    The Small Scale Industries including powerloom weavers particularly from Gujrat and Maharashtra have been demanding that TUFS will have more acceptability if an option of upfront capital incentive is given to powerloom weavers as in the Credit Linked Capital Subsidy Scheme of Ministry of Small Scale Industries.

    TUFS under Ministry of Textiles is in operation since 1.4.99 for 5 years i.e. upto 31.3.2004. There is no cap on funding under this scheme. It is an open-ended scheme depending on the capacity of the industry to absorb funds in bankable and techno- economically feasible proposals.

    Cotton ginning and pressing, spinning/silk reeling and twisting/wool scouring and combing/synthetic filament yarn texturising, crimping and twisting, manufacturing of viscose filament yarn (VFY)/Viscose Staple Fibre (VSF), weaving/knitting including non-wovens and technical textiles, garments/made-ups, Jute industry can avail concessional loan for their technology upgradation requirements. Investments in common infrastructure or facilities owned by the association, trust or co-operative society of the units participating in the TUF Scheme and other investments specified are also eligible for funding under the scheme. Nodal agencies for the scheme are IDBI, SIDBI & IFCI. The functioning of the scheme is periodically monitored by an Inter-Ministerial Steering Committee, chaired by Secretary (Textiles). A special cell has been set up in the financing institutions for expeditiously processing loan applications received under this scheme. In order to provide a network of financial organizations for sanction and disbursement of loan so as to have a better reach, IDBI has co-opted 86 institutions. SIDBI has co-opted 140 financial institutions and IFCI has co-opted Andhra Pradesh State Financial Corporation (APSFC), Maharashtra State Financial Corporation (MSFC), Mumbai, four AIFI’s HSFC and Vysya Bank. The progress of TUFS as on 30.11.2001 is

Number of applications received - 1376

total cost of project – - Rs. 13272/- crore

Amount of loan required - Rs. 7701/- crore

No. of applications sanctioned - 1154

Amount sanctioned - Rs. 4948/- crore

No. of applications disbursed - 870 and

Amount disbursed - Rs. 3150.58 crore.