Industry & Economy
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Textiles
TUFS technical advisory panel seeks Rs 1-cr limit
G. Gurumurthy
Coimbatore
,
Oct. 1
THE technical advisory and monitoring committee reviewing the implementation of the Centrally sponsored textile technology upgradation fund (TUF) scheme has recommended to the Government to enhance the project cost cap under the credit linked capital subsidy scheme (CLCS) for TUF beneficiaries from Rs 60 lakh to Rs 1 crore.
The committee decided to recommend a higher cap of project cost for the CLCS scheme at its latest meeting on September 24, according to Dr R. Asokan, a member of the technical advisory and monitoring committee (TAMC).
Dr Asokan told Business Line that the committee's recommendation came after a sustained demand by the members of the weaving industry especially the powerloom weavers who felt that the earlier upper investment limit by the ministry was too low considering the minimum investment needed for the required scale of economy in the loomage. He said many felt that the minimum economic size of the loomshed should at least have six wider width looms with a loomshed size of 3,600 sq.ft. With TAMC agreeing to the view, the committee's recommendations would be forwarded to the inter-ministerial standing committee for TUFS.
Another favourable decision of the TAMC meeting is with regard to the relaxation of the spindle norms fixed for standalone spinning mills for the consideration of funding under TUFS.
Against the originally fixed minimum of 12,000 spindles, units having minimum 8,000 spindles can now seek concessional funding under TUFS for modernisation. It is said that the lowering of the minimum spindle limit would benefit stand-alone spinning units under the SSI, which were till now not able to get modernisation fund under TUFS because of the minimum spindle threshold limit at 12,000.
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