PM backs tech upgradation scheme in textile industry

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 & industry minister Kamal Nath said on Monday. ���In our last meeting with the Prime Minister, we apprised him of the need to have technology upgradation scheme (for the textile sector). The Prime Minister himself was supporting it. We are going through the process,��� Mr Nath said at the 48th annual general meeting of the Northern India Textile Mills Association.

TUFS, that provides 5% 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,��� Mr Nath said.

He said that while extending the scheme, the government could modify it. ���TUFS will be streamlined. Inputs from industry have already been received,��� he added. Financial institutions have disbursed Rs 12,673 crore under TUFS so far, for projects with total investment of Rs 47,217 crore. Earlier, the minister of state for textile, EVKS Elangovan, said it was hopeful of extending the scheme for Integrated Textile Parks during the 11th Plan to cover more textile parks.

���In addition to the 26 parks which were sanctioned earlier, four more textile parks have been sanctioned recently, taking the total number to 30,��� Mr Elangovan said. The 26 parks involve a project cost of Rs 2,428 crore, of which the government share will be Rs 866 crore.