The Hindu Business Line : 12 banks chosen to be nodal agencies for TUFS financing

THE Centre has identified 12 major banks, including State Bank of India and ICICI Bank, as the nodal banks for direct handling of the textile accounts financed by them under the Technology Upgradation Fund Scheme (TUFS).

The other banks which have been chosen are the Exim Bank, Punjab National Bank, Union Bank of India, Bank of Baroda, Canara Bank, Bank of India, Central Bank of India, Andhra Bank, Indian Overseas Bank and National Cooperative Development Corporation (NCDC), according to an official communication from the office of the Textile Commissioner.

(Hitherto, the developmental financial institutions — IDBI and the SIDBI — were the only designated agencies to determine the eligibility of the textile units seeking TUFS financing and release the benefits. These two institutions were mandated to handle the non-SSI and SSI textile accounts respectively.)

The release said the additional 12 banks will determine the eligibility of the textile companies seeking TUFS projects as well as release the benefits and they would cover non-SSI, SSI and also cases covered under the 15 per cent credit linked capital subsidy scheme - TUFS for the small-scale sector and the 10 per cent capital subsidy for specified processing machinery approved under the TUFS recently.

In the case of the SBI, the bank would also function as the nodal bank for its seven associate banks.

In respect of the ongoing cases under the TUFS, the nodal banks would administer interest reimbursement for the quarter July-September 2005 (payable from October 1).

In the case of new accounts/past cases (for which interest reimbursement has not been claimed from IDBI/SIDBI for some reason or for some period), the interest reimbursement shall be administered by the nodal banks from October 1, though the claims may pertain to period earlier than quarter July-September 2005, the communication has said.

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12 banks chosen to be nodal agencies for TUFS financing