The Hindu Business Line : `TN has taken up TUFS issue with Centre'

Better returns Enhanced investment would give rise to demand for higher return Diversification into technical textiles would prove beneficial

Coimbatore , Nov. 5

The Tamil Nadu Chief Minister, Mr M. Karunanidhi, has taken up with the Centre the issue of extending the deadline for the technology upgradation fund scheme (TUFS), the Union Government's capital-incentive scheme for the textile industry, beyond March 2007.

During an interactive session on technical textiles and training needs of the textile sector held here under the aegis of the Southern India Mills Association (SIMA), Mr C. P. Singh, Department of Handlooms, Textiles and Khadi, said the Chief Minister's request in this regard was under serious consideration of the Union Government. The various working groups of the State Government had strongly recommended for TUFS extension, he added while presiding over the session which highlighted the scope of investments in technical textiles.

Mr Singh was responding to a request by the SIMA Chairman, Mr S.V. Arumugam, who maintained that a third of the Rs.1.55 lakh crore investment projected for the country's textile sector by 2012 would happen in Tamil Nadu. To expedite that, the continuation of the TUFS into the Eleventh Plan period should be ensured and the State Government should extend its support to bring about this as it stands to benefit an additional five million jobs to be generated by the expanded textile sector.

Enhanced investment into textiles would give rise to demand for higher return on investment which could be met only through higher value addition in manufacture, Mr Singh said adding the diversification into technical textiles would provide scope for higher return on investments.

Widespread contract cotton cultivation will support the raw material supply base for the textile industry. The district administration which is ready to support the contract farming mechanism has also mooted a private-public partnership initiative to start an industrial school in Coimbatore that will address the issue of skilled labour shortage faced by the textile industry, Mr Neeraj Mittal, Collector, said adding that his administration would move this proposal forward in the coming days.

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