The Hindu Business Line : `Allocate more funds for textile spinning sector'

Coimbatore March 30 A re-look at allocation of funds for the textile spinning sector under the technology up-gradation fund scheme (TUFS) with a suggestion for one or two per cent cut in the interest subsidy to the sector and a possible review on the vintage of used textile machinery that can be permitted for the TUFS funding are among the issues that figured at a joint meeting of textile industry representatives convened by the Ministry of Textiles in Delhi.

At the meeting held under the chairmanship of the Union Textile Secretary, Mr A.K. Singh, it was suggested that higher financial support for the garmenting units and the technical textiles sector under the TUFS dispensation be offered as the Government was keen to harness the potential of these two sectors in attracting new investments, according to sources in the textile industry here.

The spinning industry representatives present at the meeting who were not inclined to see any cut in the TUFS interest subsidy for their modernisation schemes pleaded with the Government to maintain the status quo in terms of fund allocation, the sources added.

The TUFS review meeting has been convened in the backdrop of the Government decision to extend the operation of the TUFS for the next five years beginning this April.

The Centre in the 2007-08 Budget proposal besides extending the scheme tenure has also hiked the TUFS allocation from last fiscal's Rs 535 crore to Rs 911 crore to service the higher subsidy claims from the industry.

The meeting is to reassess the views of the cross section of the textile industry before the Government could go about prioritising the TUFS resources for the ensuing fiscal. The meeting reportedly faced opposition to continue TUFS subsidy for used textile machinery imported which, according to a section of the industry, could be restricted to new generation machinery imports only. Members of the industry also felt the need for allowing a higher capital subsidy for the effluent treatment projects and technical textile projects.

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