Govt may extend TUFS to boost investments

AHMEDABAD: The textile industry has managed to add almost three million (30 lakh) new jobs since the dismantling of the quota regime in January 2005. This is close to 10% of the total direct and indirect employment in the industry, which was over 30 million up to January 2005.

A large part of the additional jobs were created in the garment sector which largely employs women. The ministry is now pushing for extension of the highly-successful subsidy-scheme — Textile Upgradation Fund Scheme (TUFS) — which is likely to give a fillip to investments and generate employment in the textile sector.

“We have approached the finance ministry and are trying to put our case to extend the scheme,” Shankarsinh Vaghela, minister of textile, said on the sidelines of a press conference. In the past five years since the TUFS was introduced, as much as Rs 45,0000-crore worth of investment have been made in various segments of the textile sector such as ginning, spinning, weaving and garmenting.

“According to our estimates as much as Rs 1.60 lakh crore worth of additional investment is likely in the textile sector and also create huge employment opportunities,” JN Singh, textile commissioner, said.

Earlier, Mr Vaghela had announced a Rs 77-crore relief package for the flood-affected textile industry of Surat. The funds will be directly distributed to the affected units by the textile commissioner, Mumbai, who has been appointed as the nodal officer. Of the Rs 77 crore, about Rs 56 crore has been earmarked for the calamity relief package and Rs 21 crore for interest subsidy for working capital loan package.