India: TUFS to generate investments for textile industry

Market News

India: TUFS to generate investments for textile industry

Union Textiles Minister KS Rao said that the Ministry has conveyed to the state government representatives to encourage investment in textile sector in various sectors including handloom and handicrafts. Speaking to media persons, Rao said that the Technology Upgradation Fund Scheme (TUFS) has been notified. Earlier, in August this year, the Cabinet Committee on Economic Affairs gave its approval for continuing the TUFS during the 12th Plan period with a major focus on powerlooms in accordance with the Budget announcement for the financial year 2013-14.

A major feature of the Scheme is that to promote indigenous manufacturing of the textile machinery, Interest Reimbursement (IR) on second hand imported shuttleless looms shall be reduced from 5 % to 2 %. On the other hand, for new shuttleless looms capital subsidy would be raised from 10 % to 15 %, IR from 5 % to 6 %, capital subsidy from 10 % to 15 % and margin money subsidy from 20 % to 30 % with an increase in subsidy cap from Rs 10 mln to Rs 15 mln.

Rao said that the Ministry has decided to increase the production in sericulture from 23 thousand tones to 33 thousand by the end of 12th Plan. He was also happy to inform that the production of yarn is beyond the requirements of the nation. The Minister added that in the recent past the handicrafts exporters conveyed to him that they wanted a warehousing facility in one of the countries of Latin America costing about 1000-2000 mln, which would be spent in about five years.

He added that he has taken up this issue with the Finance Minister and they are in support of it. “I think we will be very soon getting budget for that also and construct a warehousing facility possibly in Uruguay by which the handicrafts exporters have assured me will double the exports from 17,0000 to 34,0000 mln in less than three years.”

Highlighting the issue of skills training, Rao mentioned that we should concentrate more on skills training.” He mentioned that the Ministry is “encouraging private institutions and industries for the same. “We told them that we will give them money for training at the rate of Rs. 10,000 per trainee and they are very happy that they will undertake the training,” informed Rao.

Sericulture Workers to get MNREGA Benefit

The Textiles Minister also informed the media that the Cotton Distribution Policy has been put before the cabinet. He was also happy to inform that Union Minister for Rural Development Jairam Ramesh has agreed to integrate sericulture workers, where the farmers are marginal and small scale with the benefits of Mahatma Gandhi National Rural Employment Gurantee Act (MNREGA).