The government plans to extend the validity of its Technology Upgradation Fund Scheme (TUFS) for the textiles and garment sector beyond March 31, until a new program, is finalized.
Thegovernment is firming up a Rs 16,635-crore program to promote integrated manufacturing facilities and technology adoption in a big way to enable India to regain its lost share in the global market. The new scheme will be called the Textiles Technology Development Scheme (TTDS).
The Amended Technology Upgradation Fund Scheme (ATUFS) is supposed to mobilize fresh investments of about Rs 95,000 crore in the textile and apparel sector by FY22 and create 3.5 million new jobs. However, until FY21, it could incentivize projects worth only Rs 46,861 crore, while the subsidy disbursement stood at Rs 3,378 crore.
Under the extant scheme (ATUFS), garments and technical textiles firms are provided a 15 per cent subsidy on capital investments, subject to a ceiling of Rs 30 crore for each investor. The remaining segments, such as weaving, processing, jute, silk and handlooms, get 10 per cent, with a cap of Rs 20 crore.
