Norms under the Amended Technology Funds Scheme (ATUFS) may be simplified for players in textile and intermediaries across the value chain. Textile players face severe difficulties while availing benefits under the ATUFS due to its complicated structure.

The complicated structure of ATUFS has made it one of India’s least preferred subsidy schemes. For example, overseas machinery suppliers have to be enlisted in suppliers’ list for which the government asks for documents like the ISO (International Organization for Standardization), a certificate which machinery suppliers are reluctant to show. Secondly, the government has introduced joint inspection by textile experts in financial institutions or industry associations.

Apart from the allocation of 16-digit machine identification code number engraved on imported machinery, the government has included approval for all individual machinery mandatory for the plant. The total fund allocation under ATUFS has been low since its launch in January 2016.

Meanwhile, India’s textile and apparel exports jumped by a staggering 38 per cent in October due to growing demand from overseas. The boom has been triggered by a recovery in the global economy. The depreciating rupee helped boost realisations of textile and apparel exporters. While overall textile exports posted a jump of 28 per cent, shipment of apparel from the country shot up by 54 per cent in the month under consideration.