Industry & Economy
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Textiles
Restore tech upgrade scheme for textiles: FICCI
Our Bureau
New Delhi, Sept 24 Concerned over deceleration in the growth of cotton textiles and textile products in July, the Federation of Indian Chambers of Commerce and Industry (FICCI) has called for immediate restoration of Technology Upgradation Fund Scheme (TUFS).
The chamber has noted that in July 2007-08, cotton textiles grew by only 5.1 per cent as compared to 14.3 per cent in July 2006-07.
Textile products witnessed a growth rate of 3.6 per cent in July 2007-08 compared to 28 per cent in the previous fiscal.
The Government has decided to keep TUFS in abeyance for sanction of any fresh loans from April 1, 2007 till the finalisation of modifications in the scheme.
Realising that the single-most important factor inhibiting technology upgradation in the textile sector is the relatively high cost of capital in the current scenario, the chamber pointed-out that there is an immediate need to restore the benefits under TUFS.
The scheme provides for a reimbursement of five percentage points on the interest charged by the lending agency for a technology upgradation by a firm as per the specified guidelines.
For the small-scale textile and jute industry, there is an option to avail of either 15 per cent Credit Linked Capital Subsidy (CLCS-TUFS) or five per cent interest reimbursement.
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