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Textile industry plea on TUF

Staff Reporter

Wants additional allocation to cover synthetic fibres

COIMBATORE: The textile industry has expressed concern over the Union Cabinet's decision to include the synthetic fibre manufacturing industry under the Technology Upgradation Fund (TUF) scheme.

In a memorandum to the Union Ministry of Textiles, the Confederation of Indian Textile Industry (CITI) has said funds needed for the synthetic fibre industry would be huge and if it were to be sourced from the allocations for the TUFS this year, the textile and clothing industry would find it difficult to get proper assistance under the scheme.

There were complaints from textile and clothing units in different parts of the country that the TUFS assistance for 2006-07 had not been disbursed by most of the financial institutions and banks.

While some had made reimbursements for the first quarter, almost the entire reimbursement for the subsequent three quarters of the last fiscal were pending. The backlog was likely to be about Rs. 1,000 crore, they say.

The current allocation of Rs. 911 crore for 2007-08 was not sufficient to meet even that backlog. An additional allocation of nearly Rs. 1,100 crore was needed for the scheme to operate smoothly and effectively during the current year.

Hence, the association appealed to the Ministry to ensure that any assistance given to the synthetic fibre industry is not drawn from the current allocation for the TUFS and that the allocation is used for the textile and clothing sectors only.

Additional funds could be made available for any assistance to the synthetic fibre industry that came under the Ministry of Petrochemicals, the association noted.

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