The Textile Ministry is considering allotting ₹2,500 crore for technology upgradation fund this fiscal, and make the process to access the fund more simpler.

In his maiden interaction with the industry, Santosh Kumar Gangwar, Minister of Textile, said the industry has expressed concern over various issues, including difficulty in accessing funds from the TUF scheme.

“The problems related to the TUF scheme are only procedural issues which would be sorted out on priority,” he saidr.

Gangwar said the Government would give special attention to the textile industry as it supports cotton farmers.

“We have farmers growing wheat, sugarcane, rice etc but we keep hearing only cotton farmers committing suicide. It only highlights the fact that the sector needs special attention,” he said.

Zohra Chatterjee, Principal Secretary, Ministry of Textile, said the Government has disbursed ₹18,000 crore by way of interest and capital subsidy under TUF since the scheme was launched in 1999 , and helped the industry grow 15 per cent compound annual growth rate.

“The Government would allocate ₹2,500 crore for TUF this fiscal,” she said.

Vinod K Ladia, Chairman, Synthetic and Rayon Textile Export Promotion Council, said the Textile Ministry had to return ₹380 crore to the Finance Ministry last fiscal as banks could not finalise the list of projects eligible for interest subvention under the TUF scheme.

“Banks should give interest subvention based on the project rather than getting quarterly update on money spent in a project and raising the claim with the Government,” he said.

The industry sought Government intervention to consider labour reforms, rationalisation of import export duties and set right inverted duty structure, among others.

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