The Centre has stitched together an Amended Technology Upgradation Fund Scheme (ATUFS) that will give a boost to ‘Make in India’ in the textiles sector by attracting investments of ₹1-lakh crore and creating over 30 lakh jobs.
The Cabinet Committee on Economic Affairs on Wednesday approved the scheme to replace the existing Revised Restructured TUFS. According to an official statement, “A budget provision of ₹17,822 crore has been approved, of which ₹12,671 crore is for committed liabilities under the ongoing scheme [RR-TUFS], and ₹5,151 crore is for new cases under ATUFS.”
The statement said with the amount provided for new investment in 2012-17 exhausted, the Finance Ministry was approached for enhancing the allocation.
Under the new scheme, there will be two broad categories; one for apparel, garment and technical textiles, wherein 15 per cent subsidy will be provided over five years on capital investment not exceeding ₹30 crore. The second category, comprising all the other sub-sectors, will get 10 per cent subsidy, subject to a ceiling of ₹20 crore.
The new scheme targets employment generation and export by encouraging the apparel and garment industry. It will encourage better quality in processing industry and check the need for import of fabrics by the garment sector.
TXC to step up Eligible cases now pending with the Office of Textile Commissioner (TXC) will be provided assistance under the ongoing scheme and the new scheme given prospective effect.
The TXC is also being reorganised and its offices shall be set up in each State. TXC officers will be closely associated with entrepreneurs for setting up units under the new scheme, verifying assets created jointly with the bankers and maintaining close liaison with State government agencies.