Changes likely in TUFS

New Delhi: The Government is likely to extend the popular Technology Upgradation Fund Scheme (TUFS) for the textile sector beyond the March 2007 deadline.

'In our last meeting with the Prime Minister we apprised him of the need to have the Technology Upgradation Scheme (for the textile sector). The Prime Minister himself was supporting it. We are going through the process,' the Commerce and Industry Minister, Mr Kamal Nath, said today said at the 48th annual general meeting of Northern India Textile Mills Association.

The TUFS, floated to provide interest subsidy for modernisation of textile units during the current Plan period, is slated to expire in March 2007. The industry has been pushing for extension of the scheme into the Eleventh Plan period. 'This issue (the extension of TUFS) is on the table for the Government to resolve. With the industry persistent to extend it, the Government recognises the industry's need,' Mr Nath said.

He indicated that while extending the scheme it could be modified. 'TUFS will be streamlined. Inputs from industry have already been received,' the Commerce Minister said. Responding to the industry's concerns on trade agreements that India is negotiating, he said the textile industry would be the major beneficiary in all the preferential and free trade agreements.

He said that being a large and growing economy, India had to engage other nations in trade arrangements. 'Can we say we cannot compete with Bangladesh or Malaysia when we are adding a Malaysia to our middle class every year,' he said, adding that five years down the line tariffs would not be an issue. He said the domestic market would continue to be the biggest revenue generator for the industry as the Indian economy grows.

Textile Parks scheme


Earlier, the Minister of State for Textiles, Mr E.V.K.S. Elangovan, said the Scheme for Integrated Textile Parks was set to be extended during the Eleventh Plan to cover more textile parks. 'In addition to the 26 parks which were sanctioned earlier, four more textile parks have been sanctioned recently, taking the total number to 30,' he said.

The 26 parks involve a total project cost of Rs 2,428 crore, of which the Government's share would be Rs 866 crore.