NEW DELHI: The government on Thursday decided to put some cash in the pockets of textile units who have been reeling under falling demand ever since the global economic slowdown began last year. Textiles minister Dayanidhi Maran said that the government will provide Rs 2,546 crore under the technology upgradation fund scheme (TUFS) within three working days.
‘‘Rs 2,546 crore (under TUFS) will reach the beneficiaries in 72 hours during the slowdown this will help the industry and bring lot of comfort to the industry," Maran said. This will clear dues to the industry under the scheme till June 30. The fund would be transferred electronically through more than 121 financial institutions and banks to the accounts of 12,514 beneficiaries.
Under the TUF scheme, the government provides subsidies to the industry so that it can modernise equipment to lower production costs. Maran said the ministry would approach PM Manmohan Singh and finance minister Pranab Mukherjee for more funds for the textiles sector.
Maran also announced the constitution of a 41-member working group under textiles secretary Rita Menon to form a National Fibre Policy aimed at making India self-sufficient in fibre consumption and export requirements.
The group will submit its report in the next three months. ‘‘The policy would be announced by the year-end,'' Maran said. Textiles exports have been affected due to change in the consumption pattern in the US and European Union which have been affected deeply by the global slowdown. Apparel exports dipped by 15% in the first quarter of this fiscal. Maran said there was no growth in the exports due to the slowdown in overseas demand.
The ministry would be taking up the industry's demands like increased duty drawbacks with the commerce ministry so that the same could be considered for inclusion in the foreign trade policy to be announced by month-end. Maran said several Japanese companies have shown interest to invest in Indian textiles sector and a delegation would be visiting the country.
The textiles ministry is also proposing roadshows in European countries in October to attract FDI in the sector. Textiles industry contributes about 4% to the country's GDP, 14% to industrial production and 12% to export earnings.
Source : TOI