CCEA approves Amended Technology Upgradation Fund Scheme for textile sector

The Cabinet Committee on Economic Affairs (CCEA) has approved introduction of Amended Technology Upgradation Fund Scheme (ATUFS) for technology upgradation of the textiles industry.
Decision in this regard was taken by CCEA meeting chaired by the Prime Minister Narendra Modi in New Delhi.
The ATUFS replaces existing Revised Restructured Technology Upgradation Fund Scheme (RR-TUFS) to give a boost to textile sector under Make in India campaign.
ATUFS targets

• Employment generation (including women) and global export by encouraging garment and apparel industry.
• Promote Technical Textiles which is a sunrise sector for export and employment creation.
• Improvement in quality and productivity by promoting conversion of existing looms to better technology looms.
• Encourage better quality in textile processing industry and keep check on import of fabrics by the garment sector.

Two broad categories of ATUFS

• Apparel, Garment and Technical Textiles sectors would be provided on capital investment with fifteen per cent subsidy. However, it will be subject to a ceiling of Rs. 30 crore for entrepreneurs over a period of five years.
• Remaining sub-sectors of textile sectors would be provided subsidy at a rate of 10 percent. However, it would be subject to a ceiling of Rs.20 crore.

The amended scheme would attract investment to the tune of one lakh crore rupees in textile sector and create over 30 lakh jobs. A budgetary provision of Rs.17,822 crore has been approved of which Rs. 12,671 crore is for committed liabilities under the ongoing RR-TUFS scheme and Rs. 5,151 crore is for new cases under ATUFS.

About Technology Upgradation Fund Scheme

TUFS was introduced by the Union Government in 1999 to facilitate new technology for making the Indian textile industry globally competitive and to reduce the capital cost for the textile industry. The scheme was earlier amended for continuation during the 12th Five year Plan into Revised Restructured Technology Upgradation Fund Scheme .

Month: Current Affairs - December, 2015