• PAGE ONE
• INDEX
• HOME

Cluster-wise approach mooted for textile technology upgradation

G. Gurumurthy

COIMBATORE, Aug. 15

WORRIED over the textile industry's slow pace in utilising the technology upgradation fund scheme (TUFS), the inter-ministerial steering committee (IMSC) on TUFS now wants to give cluster-wise/area wise approach for implementing the scheme.

The IMSC has suggested that the clusters/field areas identified would be assigned to senior officers in the headquarters of the office of the Textile Commissioner for supervision and follow-up action. They will obtain a weekly progress report from each r egion/cluster.

A consolidated report in respect of different regions would then be sent to the Ministry of Textiles (MoT) on a weekly basis by the Textile Commissioner.

The lead officers in the clusters/areas will also be required to involve State agencies, textile research associations and export promotion councils besides the textile industry associations to secure their support in expeditiously identifying TUFS benef iciaries. The whole exercise is aimed at mobilisation of available human resources for identification of beneficiaries and preparation of TUF loan applications.

The IMSC, after a recent review of the progress made by the TUFS, has also favoured holding loan camps in a few identified clusters/areas to facilitate preparing loan applications for beneficiaries, according to the textile industry sources.

The move to mobilise field officials at cluster/area level, the sources said, follows the rather lukewarm response to the TUFS operation in terms of offtake of funds, especially by the targeted segments, namely the weaving and processing sectors. The IM SC is keen on encouraging the potential beneficiaries in these sectors to avail of the TUFS.

In the last month review meeting, it was pointed out that the total disbursement of loan under TUFS for different segments of textile industry as on June 30, 2000 had crossed Rs. 1,000 crores.

Though this amount signifies some improvement over the first year's operation of the TUFS when the offtake of loan amount remained far below the expected levels, the Ministry feels that more fillip must be given to the scheme among the potential investor s.

The segment-wise fund utilisation under TUFS during the first year of its operation ended March 31, 2000 whose details have been made available by the Government points out that of the total amount of Rs. 701 crores disbursed, the spinning sector and the composite mill sector took away a major chunk, while the weaving and garment manufacturing sectors' utilisation was negligible.

While the spinning industry could get Rs. 189 crores, accounting for 27 per cent of total amount disbursed, the composite mill sector could garner about Rs. 182 crores (26 per cent). The TUFS loan disbursed to the weaving sector worked out to Rs. 40.88 c rores (5.8 per cent of total loan disbursed).

The share of garment manufacturing units remained a meagre Rs. 31 crores. In the case of processing of fibres, yarns, fabrics, garments and made-ups, the loan offtake remained at Rs. 202 crores or 28.9 per cent of the total loan disbursed. The share of the knitting sector was Rs. 14.73 crores.

The IMSC has wanted the Textile Commissioner's Office to follow up the cases where the modernisation projects under the TUFS presented by the promoters were rejected by financial institutions. The office of the Textile Commissioner could collect the deta ils to analyse the reasons for their rejection and cases amenable to corrective action for re-submission may be pursued.