New Delhi: The government's popular technology
upgrading scheme has run into fund deficit following an
overwhelming demand from the industry for subsidy on capital
cost for modernising operations.
"To clear subsidy till December, we will be requiring
additional amount of Rs 1,884 crore in 2009-10," Textiles
Minister Dayanidhi Maran said at the meeting of the
Parliamentary consultative committee here yesterday.
Under the Technology Upgradation Fund Scheme (TUFS), the
government extends subsidy of five per cent to the capital
cost of modernisation of the industry.
The government had made a provision of Rs 2,890 crore for
fiscal 2009-10. Of which Rs 2,546 crore has already been
released this year and to clear the subsidy till December
additional funds are required, the minister said.
The industry has already availed Rs 66,275 crore under the
scheme since its inception on April 1, 1999 till June 30.
Maran said TUFS was able to stimulate additional
investments of Rs 1,79,834 crore in the industry benefiting
25,809 units.
The USD 60 billion textile industry, the second largest
employer after agriculture, has been passing through tough
times since global slowdown began in the second half of 2008.
The industry gets close to one-third of its revenue from
exports, largely to the western markets.
Bureau Report
First Published: Friday, November 06, 2009, 18:40