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Govt to restructure tech fund scheme: Minister Santosh Gangwar |
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NEW DELHI: The Centre will not discontinue the Technology Upgradation Fund Scheme (TUFS) and rather restructure it keeping in view the complaints of the textile industry, Union Minister Santosh Gangwar said today.
TUFS was introduced in 1999 to catalyse investments in all the sub-sectors of textiles and jute industry by way of 5 per cent interest reimbursement.
The Textile Minister said his ministry has requested the Finance ministry to make the desired changes, and the "scheme will not be discontinued" but will only be tweaked to remove the "complaints" by the industry.
However, representatives of the textile industry are of the view that they should be consulted before the requisite changes are made, pointing out that the sector is in a "bad shape" and the government has not disbursed subsidy amount under the scheme for the period after September 2014.
"TUFS will remain. However, we are making some changes (in the scheme). We have suggested to the Finance Ministry that the scheme should not be discontinued as it is in force since 1998-99 and has benefited the sector immensely. There was a blackout and leftout period in between which was wrong," Gangwar told PTI on the sidelines of an Assocham event here.
Asked by when the changes in the new scheme will be notified, he said "it will be known in hardly 15 days".
Gangwar added that Prime Minister Narendra Modi wants the scheme to "reach a logical end".
However, he added the government will not discontinue the scheme but will restructure it in such a manner that there are no "complaints". As of now, the scheme is to continue till March 2017, the end of 12th plan period.
Confederation of Indian Textile Industry (CITI) Secretary General Binoy Job said: "For more than a year, the money has not been disbursed. This year the subsidy amount was released in September, but that was for until September 2014.
"As a result, we are badly stuck as textile industry runs on bare minimum margin of 2-5 per cent. The industry is already in a bad shape because of global market conditions like China slowdown, and is thus, heavily dependent on the subsidies.
"If the government does not disburse committed support under TUFS, we will be in a soup. Before restructuring, the government should consult the textile industry," he added.
Job further said that the Rs 1,520 crore allocated for TUFS in the 2015 budget is "quite less" since as per the scheme, at least Rs 3,000 crore should have been provided.
Besides, the Textile Minister expects the new policy to be finalised before the Winter Session of Parliament.
"We have circulated the draft policy for inputs among various ministries. I expect the new policy to be finalised before the Winter session of Parliament," Gangwar said.
The new Textiles Policy, which is being finalised by the government, aims to increase the exports to USD 300 billion by 2024-25 and envisages creation of additional 35 million jobs.
However, the scheme was subsequently modified in Revised Restructured form and continued for the textile and jute industries with effect from April 1, 2013 to March 31, 2017.
Accordingly, the scheme was rechristened as Revised Restructured Technology Upgradation Fund Scheme (RR-TUFS).
For the current year, the budget allocation for TUFS has been reduced to Rs 1,520 crore as against Rs 1,840 crore last year.
Union Minister for Minority Affairs Najma Heptulla, who was also present at the Assocham conference on luxury industry, said the corporates must explore the option of working with local communities not only to create employment but also to maintain their legacy of craftsmanship.
Such collaboration and cohabitation will ensure continued development of Indian luxury industry, she said.
However, while luxury goods have consistently gained both market share and mind share in India, several key challenges such as lack of quality luxury space and infrastructure, a highly fragmented consumer base, significant import duties, among others are impediments to its growth, Assocham President Rana Kapoor said.
"It is, therefore, critical for the government to take significant steps towards establishing a more liberal trade policy and a robust regulatory framework, which will be crucial for attracting investments into the sector," he said.
The government is working on providing market linkages - both national and international - providing access to credit and information and encouraging skills upgradation and value addition through avenues like branding, packaging and technology, said Heptulla.
"We are also working on enhancement of business opportunities for artisans," she added.
She further said that her Ministry has recently identified 18 crafts and has come out with a coffee table book titled as "creative continuum" featuring them. This is an attempt to systematically document the traditional crafts in which predominately minority communities are engaged.
Source : economictimes.indiatimes.com
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