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Our Bureau

Coimbatore , Nov. 3

TAMIL Nadu-based textile industries have gained most out of the Centrally-sponsored Technology Upgradation Fund Scheme (TUFS).

The State's textile enterprises (number of applicants being 677) have lapped up Rs 1,480 crore or 26 per cent of the Rs 5,600 crore of total project finance disbursed by the FIs/banks under TUFS at the national level in the last five years of operation of the scheme.

According to the data on the State/segment-wise progress of TUFS as on end-July 2004 released by the Ministry of Textiles (MoT), project promoters in Punjab (293 applicants) and Gujarat (841 applicants) come next only to Tamil Nadu in drawing out maximum TUFS funding.

While enterprises in Punjab have been given a total disbursal of Rs 776 crore (13.8 per cent), the total TUFS loan amount disbursed to the textile accounts in Gujarat works out Rs 690 crore or 12.3 per cent of the total disbursal).

The textile projects in Maharashtra (180 applicants) and Rajasthan (186 applicants) account for a loan disbursal of Rs 616 crore and Rs 507 crore respectively, while the units in all the other remaining States could receive another Rs 1,534 crore worth loan. The TUFS performance data has shown that the non-SSI sector has claimed the largest chunk — Rs 4,893 crore (87 per cent) — of the Rs 5,605 crore loan and the SSI textile accounts have collected the remaining Rs 712 crore.

As for the segment-wise performance, spinning industries (359 applicants) have secured most of the Rs 1,800 crore worth TUFS loan (32 per cent).

The composite textile mills (141 applicants) received the second largest chunk (Rs 1,426 crore) of the total loan disbursed.

A loan amount of Rs 824 (14 per cent of the total loan amount) was distributed among 348 applicants in the processing industries. The weaving and knitting industries received Rs 431 crore and Rs 252 crore, respectively.

The fund borrowed under the TUFS are eligible for a 5 per cent interest reimbursement from the Ministry which directly remits it into the beneficiary textile unit's TUFS term loan account held by the FI or its co-opted lending agency.

More Stories on : Textiles | Tamil Nadu

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