Modified TUFS for spinning sector soon
After extending the popular Technology Upgradation Fund Scheme (TUFS) for another five years, the ministry of textiles is now considering modifications in the scheme for the benefit of small and medium-sized spinning mills, according to the Union ...
By TNN |
TIRUPUR: After extending the popular Technology Upgradation Fund Scheme (TUFS) for another five years, the ministry of textiles is now considering modifications in the scheme for the benefit of small and medium-sized spinning mills, according to the Union textiles minister Shankersinh Vaghela.
“Though the TUFS is being continued for the next five years, industry stakeholders expect some modifications in that, especially with regard to the spindelage. Spinning sector has been the major beneficiary availing around 60 per cent of the total amount disbursed. We are planning to reduce the capital subsidy for spindles to 3 per cent from the existing 5 per cent,” he added.
It is noteworthy that the textiles ministry had asked the lending institutions to suspend sanctioning of fresh loans under TUFS with effect from April 1, 2007.
“Though the TUFS is being continued for the next five years, industry stakeholders expect some modifications in that, especially with regard to the spindelage. Spinning sector has been the major beneficiary availing around 60 per cent of the total amount disbursed. We are planning to reduce the capital subsidy for spindles to 3 per cent from the existing 5 per cent,” he added.
It is noteworthy that the textiles ministry had asked the lending institutions to suspend sanctioning of fresh loans under TUFS with effect from April 1, 2007.
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