The Hindu Business Line : Concessional funding for wind energy equipment

THE Inter-Ministerial Steering Committee (IMSC) on textile technology upgradation fund (TUF) scheme has allowed coverage of the second-hand imported non-woven machinery of 10-year vintage having 10-year residual life for the TUFS funding.

The steering committee has also included the coverage of wind energy equipment for concessional funding under the TUFS by including it under the `wind turbine' category of items in the entry pertaining to other investments eligible for TUFS. However, the nodal agencies advancing loans to wind energy equipment would send the detailed project proposals received by them from the promoters to the Textile Ministry to seek its approval before releasing the interest reimbursement, according to a communication from the Textile Ministry.

The IMSC in its meeting held last month has also decided to provide incentive to FIs/banks which advance the TUFS loans to the textile units for releasing early the 5 per cent interest reimbursement.

Accordingly, the banks or FIs, which have advanced loans to textile units eligible for 5 per cent interest reimbursement will accept the repayment of loan if made within the prescribed date without the 5 per cent interest reimbursement which it will get from the nodal agency. On the amount reimbursed, the Banks/FIs may, however, charge interest at PLR from the unit till it is received from the nodal agency.

The IMSC has made two more crucial decisions to further widen the scope of the TUFS. Extending the coverage of TUFS to hire purchase scheme operated by the National Small Industries Corporation (NSIC) and increasing the vintage of the used imported waterjet looms from the existing 5 years to 10 years. The committee's changes would now cover the interest part of the hire purchase scheme offered by NSIC to become eligible for concessional TUFS lending subject to the condition these machinery should meet the technology parameters laid down under the scheme.

As for the relaxation given to the waterjet looms besides increasing the vintage, the norm for minimum width of the looms to become eligible under the TUFS has been brought down to 150 cm from the existing 165 cm, the communication said.

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