PM in favour of TUFS extension: Nath
By PTI |
Highlights
NEW DELHI: Prime Minister Manmohan Singh has supported the continuation of the Technology Upgradation Fund Scheme (TUFS) for the textile sector beyond March 2007, Commerce and Industry Minister Kamal Nath said on Monday.
"In our last meeting with Prime Minister we apprised him other need to have technology upgradation scheme (for the textile sector). Prime Minister himself was supporting it. We are going through the process," he said at the 48th Annual General Meeting of Northern India Textile Mills Association.
TUFS, that provides interest subsidy for modernisation, is slated to expire in March 2007 and the industry has been pushing for extension of the scheme in the 11th plan period.
"This issue (the extension of TUFS) is on the table for the government to resolve. With the industry persistent to extend it, government recognises the industry's need," Nath said.
He indicated that while extending the scheme it could be modified. "TUFS will be streamlined. Inputs from industry have already been received," the Commerce Minister said.
Responding to the industry's concerns on trade agreements that India is negotiating, he said the textile industry would be the major beneficiary in all the preferential and free trade agreements.
Nath said as a big country, India has to engage with other nations. "Can we say we cannot compete with Bangladesh or Malaysia when we are adding a Malaysia to our middle class every year," he said, adding that five years down the line tariffs would not be an issue.
"In our last meeting with Prime Minister we apprised him other need to have technology upgradation scheme (for the textile sector). Prime Minister himself was supporting it. We are going through the process," he said at the 48th Annual General Meeting of Northern India Textile Mills Association.
TUFS, that provides interest subsidy for modernisation, is slated to expire in March 2007 and the industry has been pushing for extension of the scheme in the 11th plan period.
"This issue (the extension of TUFS) is on the table for the government to resolve. With the industry persistent to extend it, government recognises the industry's need," Nath said.
He indicated that while extending the scheme it could be modified. "TUFS will be streamlined. Inputs from industry have already been received," the Commerce Minister said.
Responding to the industry's concerns on trade agreements that India is negotiating, he said the textile industry would be the major beneficiary in all the preferential and free trade agreements.
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Nath said as a big country, India has to engage with other nations. "Can we say we cannot compete with Bangladesh or Malaysia when we are adding a Malaysia to our middle class every year," he said, adding that five years down the line tariffs would not be an issue.
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