With the new textile policy under development, there are signs of positivity for the apparel and textile industry of India as the textile ministry plans to restructure the Textile Upgradation Fund Scheme (TUFS). Proposals include extension of the loan suspension period to 2 years and a total of 7 years for repayment, increasing capital subsidy on new shuttle looms from 10 to 15 per cent and the interest rate from 5 to 6 per cent, the Margin Money Subsidy has been increased from 20 to 30 per cent with an increase in subsidy cap from Rs 1 crore to Rs 1.5 crore. Also proposed are relaxation in the terms and conditions of the loans, increasing the assistance to upgrade plain looms into shuttle less looms, weaving preparatory, knitting machines, ginning and pressing machine, extending the subsidy to imported machinery and enhancing the margin money subsidy under the scheme.
