• PAGE ONE
• INDEX
• HOME

Textile processors' plea on TUF benefits

Our Bureau

COIMBATORE, June 24

TEXTILE processing industries have asked the Centre to extend the Technology Upgradation Fund (TUF) scheme benefits to the modern textile processing houses that were set up prior to the launch of TUF.

The textile processors have also sought the Government to rationalise the TUF norms, both financial and technical, so as to confer a higher interest subsidy of 10 per cent and longer loan repayment period under TUF scheme for the processing units.

These requests were made on behalf of the textile processors by the All-India Modern Textile Processors Association (AIMTEX), a new industrial association formed recently by members of the textile processors, to the Textile Minister, Mr. Kashiram Rana, h ere.

The association, in its representation, has pointed out that rationalisation of the TUF scheme with regard to the textile processing sector was needed considering the fact that most of the modern textile processing units were started with huge capital ou tlay incurring higher interest costs. These units had to avail high-cost loan with higher interest burden as they were all set up prior to the introduction of the scheme.

This will put the existing units in a disadvantageous position compared to the new processing houses coming up with concessional financial assistance under the TUF scheme. Therefore, there was a need for the old/existing processing houses to be protecte d by way of extending the same concessional lending offered under TUF to former as well, the representation pointed out.

New investment into the textile processing industry could be attracted only if the existing processing units are made profitable, the representation said adding that the Government should also include additional machinery/equipment such as fluidised bed boiler, chimney and other accessories and automatic feeding system under the list of machinery eligible for TUF scheme for the processing units.