The Textile Ministry has sought more benefits for the weaving sector under the revised Technology Upgradation Fund Scheme (TUFS); on the other hand, spinning sector incentives are to be reduced. The scheme that was very popular in textile industry just a few years ago is being restructured and will be part of the next Five Year Plan. The ministry is going to submit revised scheme proposal to the cabinet for making it as a part of the next Five Year Plan.
The weaving sector is expected to get 6% interest rate subvention, which right now stands at 5%. Initially the Textile Ministry had proposed for Rs. 12,000 crore to be set aside for the sector. The Planning Commission had earlier given in-principle approval for the scheme to be included in the 12th Plan. The amount which will be finally allocated to TUFS could differ from the amount the ministry has proposed.
The Government is also trying to increase credit flow to the power loom and processing sectors. In the last two years, textile companies have slowed down their expansion plans due to economic uncertainties in major economies, who are major importers of Indian textiles. So many players did not avail of textile benefits.
