Indian industry has welcomed the approval of the Amended TUFS (ATUFS) by the Cabinet Committee on Economic Affairs, and extended garment industry's thanks to the government.

Chairman AEPC, Virender Uppal stated that, "It will provide the much needed thrust for the expansion and growth of the apparel industry along with the employment generation in India. The approval has come as a great relief to the garment industry."

Uppal, has also welcomed the decision of the Cabinet that approved TUFS term loans already sanctioned.

The earlier apprehension was done away with the uncertainty by clarifying that all cases pending with the Office of Textile Commissioner, which are complete in all respects, shall be provided assistance under the ongoing scheme and the new scheme will be given prospective effect. A budget provision of Rs.17,822 crore has been approved, of which Rs. 12,671 crore is for committed liabilities under the ongoing scheme, and Rs. 5,151 crore is for new cases under ATUFS.

He also lauded the effort of Government, in helping the industry and said it will further boost the 'Make in India' initiative.

Apex industry body, FICCI has also welcomed the approval of the Amended TUFS (ATUFS) by the Cabinet Committee on Economic Affairs, chaired by the Prime Minister Narendra Modi.

"The approval has come as a great relief to the industry especially when the exports were declining in textile and apparel sector" said Shishir Jaipuria, Chairman, FICCI Textiles and Technical Textiles Committee.

"The focus on employment generation and export under the new TUFS by encouraging apparel and garment industry and promotion of technical textile sector, is indeed a welcome step which will help in furthering the cause of Make in India" said Jaipuria.

FICCI said that the industry was earlier apprehensive that under the current review of the TUFS term loans already sanctioned may get considered in the new scheme that would have affected the projects in pipeline.

FICCI therefore had requested to the Hon'ble Finance Minister in its meeting with him on 1st August 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.

The Cabinet approval has removed this apprehension and done away with the uncertainty by clarifying that all cases pending with the Office of Textile Commissioner which are complete in all respects, shall be provided assistance under the ongoing scheme and the new scheme will be given prospective effect.

Further, FICCI had also requested to the Hon'ble Finance Minister to increase the allocation under the scheme to Rs 5000 crore which has also been accepted by making a budget provision of Rs.17,822 crore, of which Rs. 12,671 crore is for committed liabilities under the ongoing scheme, and Rs. 5,151 crore is for new cases under ATUFS.