The Hindu Business Line : `Extension needed in 11th Plan period'

The textile industry has expressed concern over reports that the Union Government might put a full stop to the technology upgradation fund scheme (TUFS).

Speaking for the industry at a conference organised by the CII here recently, Mr Manikam Ramaswami, Managing Director of Loyal Textiles Ltd, wanted the Government to continue the scheme to support the industry as it started tapping huge opportunities globally.

He appealed to Dr Y.S. Rajasekhara Reddy, Andhra Pradesh Chief Minister, to take up the issue with the Union Government .

"The industry needs the scheme at least for one more Plan period," Mr Manikam Ramaswami said.

Responding to the plea positively, Dr Rajasekhara Reddy said the scheme reduced interest rates by five per cent, making the interest costs globally competitive.

He asked the industry to emulate the Punjab experiment in improving productivity in cotton.

Assuring the industry that the Government would provide all help including setting up of training centres, the Chief Minister said the State would have exclusive SEZs (special economic zones) for garment manufacturing.

Mr Manikam Ramaswami felt that the textile companies should be allowed to form a consortium (after the five-year power subsidy period ended) and generate power for internal consumption.

Speaking on the demand side, Mr Rakesh Gaur, Senior Executive Vice-President of Reliance Industries, said India and China were fast emerging as major consumption centres.

India would join the top five textiles markets (after the US, Germany, China and the UK) with a size of $55 billion by 2015. In 2005, the market size was put at $30 billion.

More Stories on : Textiles | Modernisation

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page