CITI seeks extension of TUFS for 5 years
Textile industry on Monday sought extension of interest subsidy scheme TUFS for five more years so that the modernisation of the sector could continue at the existing pace.
By PTI |
NEW DELHI: Textile industry on Monday sought extension of interest subsidy scheme TUFS for five more years so that the modernisation of the sector could continue at the existing pace.
"Even though the Technology Upgradation Fund Scheme was launched in 1999, it has been only one year that the scheme started to yield any results. It would be too early stop it now," CITI Chairman Shekhar Agarwal said.
The scheme is ending in March 2007 and the government is unlikely to extend it further.
Initially not many units had come forward to avail of its benefits but after the phasing out of the quota regime in the world textile trade, the number of applicants under the scheme has gone up substantially.
In fact this years budgeted subsidy under the scheme has already been exhausted.
From a level of less than Rs 1,500 crore per year some three years back, investment in textiles availing TUFS has grown to Rs 15,000 crore per year and is likely to touch Rs 30,000 crore this year, CITI said.
The industry body said continuation of the scheme would help in meeting the investment required by the sector, which is expected to be Rs 1,94,000 crore during 2007-12.
"Our exports today stand at 18 billion dollars and have the potential to grow to 50 billion dollars by 2012. Similarly, if the scheme is extended till 2012 1.25 crore jobs can be created in the sector, of which 40 lakh people have already been employed," Agarwal said.
"Even though the Technology Upgradation Fund Scheme was launched in 1999, it has been only one year that the scheme started to yield any results. It would be too early stop it now," CITI Chairman Shekhar Agarwal said.
The scheme is ending in March 2007 and the government is unlikely to extend it further.
Initially not many units had come forward to avail of its benefits but after the phasing out of the quota regime in the world textile trade, the number of applicants under the scheme has gone up substantially.
In fact this years budgeted subsidy under the scheme has already been exhausted.
From a level of less than Rs 1,500 crore per year some three years back, investment in textiles availing TUFS has grown to Rs 15,000 crore per year and is likely to touch Rs 30,000 crore this year, CITI said.
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The industry body said continuation of the scheme would help in meeting the investment required by the sector, which is expected to be Rs 1,94,000 crore during 2007-12.
"Our exports today stand at 18 billion dollars and have the potential to grow to 50 billion dollars by 2012. Similarly, if the scheme is extended till 2012 1.25 crore jobs can be created in the sector, of which 40 lakh people have already been employed," Agarwal said.
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