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Ludhiana’s textile sector calls new ‘ATUFS’ pro-corporate

While the textile industry has welcomed the new ATUFS announced by the Cabinet, Ludhiana's textile industry has called it “pro-corporate, anti-small sector and confusing”.

In a meeting on December 30, 2015, the Centre's Cabinet Committee on Economic Affairs (CCEA) gave a go-ahead to amend its Technology Upgradation Fund Scheme (TUFS), removing a portion that gives 30 per cent subsidy on textile machines priced between Rs 75 lakh and Rs 5 crore. However, with the new amendment forwarding 15 per cent subsidy to machines costing up to Rs 30 crores and having no mention of any additional benefit to small-time industrialists, representatives of Ludhiana's textile industry bodies have said that the move will benefit only large enterprises.

Harish Dua, President of Knitwear and Apparel Exporters' Organisation, said that it seems the decision has been taken to "benefit large enterprises". He further said that the amendments were confusing as they were not clear on whether old benefits would be withdrawn from the small sector. Bhushan Abbi, President of Home Furnishing and Textile Cluster, warned of a statewide strike over the decision.

The new scheme doses not define sub-sectors and only mentions “Apparel, Garment and Technical Textiles”. According to the scheme, only these three sectors would get 15 per cent subsidy on capital investment, subject to a ceiling of Rs 30 crores for entrepreneurs over a period of five years. Remaining sub-sectors would be eligible for subsidy at a rate of 10 per cent, subject to a ceiling of Rs 20 crores on similar lines. These sectors include standalone spinning, weaving, woolen sector, and knitting.

www.knitsandwears.com

 
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