Government to restructure Technology Upgradation Funds scheme: Union Textiles Minister Gangwar

MUMBAI: The Centre is considering restructuring of the Technology Upgradation Fund (TUFs) Scheme for the revival of the textile sector.

"The restructuring of the Technology Upgradation Fund (TUF) scheme is under active consideration of the government. So TUFs will be re-launched very soon," Union Textiles Minister Santosh Kumar Gangwar said on sidelines of a Textile award funtion award function here last week.

TUFs, implemented from April 1999, was introduced to catalyse investments in the textile and jute industry, with a five per cent interest reimbursement.

The scheme was initially approved from April 1999 to March 2004, extended to 2007 with modifications and further restructured with effect from April 2011, to March 2012.

In 2012, the Centre announced its continuation for the 12th Plan period of 2012-17, with an outlay of Rs 11,900 crore.

Gangwar expressed confidence that the recent announcements of the Interest Equalisation scheme, revised DBK rates and the inclusion of additional products/countries will give a boost to the textiles and clothing exports.

Textile Commissioner Kavita Gupta said the companies should look at training programmes as the Centre provides Rs 10,000 per trainee to the company that participates in the scheme.

Texprocil chairman R K Dalmia said 2015 has been a year of exceptional slowdown for the export sector with exports growing at less than 3 per cent, causing worries all round. In 2016, global export growth is expected to improve marginally to about 4 per cent.