TUFS may be extended, says Elangovan

Coimbatore: The Union Minister of State for Textiles, Mr E.V.K.S. Elangovan, on Wednesday indicated the possibility of extension of the textile upgradation fund (TUF) scheme.

He, however, maintained that the outcome would be known only during the Budget session.

Mr Elangovan was responding to the issues raised by the South India Small Spinners Association (SISSPA).

The association, in a memorandum sought the support and consideration of the Centre on five specific issues, such as time extension for TUF scheme, the need for streamlining the process for TUF to reduce the delay in disbursement of funds, special subsidy for combers and autoconers under TUF, initiating schemes for youth to tide over the skilled manpower shortage in the textile industry and reduction in the import duty for autoconers.

Responding to all these issues on a positive note, Mr Elangovan said additional nodal banks were co-opted under TUF to reduce the delay in disbursement of funds. At present, the total number of nodal agencies/banks stand at 16. 'If the industry still finds some delay, the matter will certainly be looked into,' he assured.

On special subsidy for combers and autoconers, Mr Elangovan said 'once the decision for extension of TUF is taken, this issue would be placed before the Technical Advisory-cum-Monitoring Committee and Inter-Ministerial Steering Committee for inclusion under TUF.'

On reduction of import duty for autoconers, he said the matter would be forwarded to the Finance Ministry for due consideration.

The Minister called upon the members to make good use of the schemes announced by the Government. 'We invariably react very slowly after the announcements are made,' he said referring to the late take off in the TUF scheme.

Hailing the textile and clothing industry's contribution to the country's industrial production, Mr Elangovan said the country was emerging as a major outsourcing hub because of its comparative advantage on availability of relatively inexpensive skilled workforce, design expertise, availability of a wide range of textiles and large production base.