Amended Technology Upgradation Fund Scheme (A-TUFS) will focus on the incentives of machine manufacturing in India also. So far, the scheme is majorly for textile and apparel manufacturers.
A top official of the Ministry of Textiles (MoT) told Apparel Resources, “India is dependent on the import of machines for textile and apparel manufacturing; we certainly wish to reduce this dependency as much as possible. And for this, we are planning to add machine manufacturing in the upcoming edition of the scheme.”
It is pertinent to mention here that the ongoing ATUFS scheme will complete its time after one year on 31 March 2022.
MoT has been implementing Technology Upgradation Funds Scheme (TUFS) since 1999 to facilitate technology upgradation of textiles industry in the country. The scheme has undergone changes from time to time in terms of patterns of assistance provided and level of machinery upgradation desired.
Under this scheme, every eligible individual entity is supposed to get a capital investment subsidy worth Rs. 30 crore to Rs. 20 crore, depending on the amount and segment of investment. However, there are lots of complications regarding the execution of the scheme.
On the difficulties regarding proper execution of this scheme, he said, “We are very much aware that ATUFS has become ‘tough’ for the textile industry and keeping this in mind, we will make sure that in future no such challenge arises.”
