There was no word on whether or not the technology upgradation fund (TUF) scheme for new investments in the textile industry would continue once it expired in March 2022.
The absence of TUF has resulted in new projects becoming at least 35 per cent more expensive, and the Gujarat textile sector is requesting that the scheme be implemented with retrospective effect.
The Gujarat government should launch a new programme to support the apparel industry, according to industry participants, as the current one expires in October 2022.
Saurin Parikh, chairman of the GCCI textile taskforce, said, “The TUF scheme ended last March, and there has been talk about a new TUF scheme but nothing has been announced yet. We believe government support is needed in spinning, weaving, processing and garment making to make India a global textile hub. We need stable cotton supply to remain competitive in the global market and for we need to increase cotton yield from the current 500kg a hectare to 750kg.”
He continued by saying that since Indian cotton prices are higher than those found elsewhere and new facilities are being planned for the spinning industry, the import duty on cotton should be eliminated.
Rahul Shah, co-chairman of the GCCI textile taskforce, said, “Gujarat has seen new investments worth around Rs 500 crore since last March in textiles, and they should get the TUF scheme benefits. New projects have become 35 per cent costlier due to absence of the scheme. The Gujarat government’s garments scheme ended in October last year and has not been extended. Similarly, the Gujarat Textile Policy will expire in December 2023 and a new policy should be prepared to help the industry.”
