Govt to continue TUFS for textile industry further

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SME Times News Bureau | 17 May, 2012
The Ministry of Textile has proposed extension of the Technology Upgradation Fund (TUF) Scheme in the 12th Five Year Plan with an allocation of Rs. 158.86 billion, informed Minister of State for Textiles Panabaaka Lakshmi in a written reply to the Lok Sabha on Wednesday.

The minister said, "Government has enhanced allocations under Technology Upgradation Fund Scheme (TUFS) from Rs. 8,000 crore to Rs. 15,432 crore in the 11th Five Year Plan for modernization of textiles industry."

Speaking about the growth in textile exports, she said, "Textiles exports for the year 2011-12 are projected at USD 34 billion." During 2010-11, the textiles sector achieved exports of USD 26.8 billion.

According to media reports, the restructured TUFS, introduced last year, would continue in the current year (2012-13). Ministry of Textiles has issued the resolution on Restructured TUFS for the period 28.04.2011 to 31.03.2012 (both the days inclusive) with an overall subsidy cap of Rs.1972 crore during the period.

Lakshmi also said that the Government has introduced several provisions in the Foreign Trade Policy (2009-14) for providing incentives/ concessions to the Textiles & Clothing sector exports, which includes incentives for exports to focus markets and exports of focus products, extension of Duty Entitlement Passbook Scheme, interest subvention on pre-shipment credit, duty-free import of trimmings etc. required by the garment industry and duty-free import of tools by the handicrafts industry.

"Besides, financial assistance is being provided to the exporters under the Market Development Assistance Scheme and Market Access Initiative Scheme for projecting capabilities in existing markets and exploring new markets," she added.