(a) whether the Textile Upgradation Fund Scheme is likely to be down sized;
(b) if so, the details thereof and the reasons therefor;
(c) the steps taken/proposed to be taken to help the textile sector;
(d) whether the banks have refused to reimburse 5 per cent interest subsidy under Textile
Upgradation Fund Scheme;
(e) if so, the reasons therefor; and
(f) the steps being taken by the Government in this regard?
THE MINISTER OF STATE IN THE MINISTRY OF TEXTILES(SHRI E.V.K.S. ELANGOVAN)
(a) & (b): Under the Technology Upgradation Fund Scheme, which is being implemented by the
Ministry of Textiles, Government of India, enhanced budget provisions have been made in the
successive financial years i.e. Rs 485 crore in 2005-06, Rs. 835.00 crore in 2006-07, Rs. 945
crore in 2007-08 and Rs. 1140 crore in 2008-09 etc. Accordingly, this Scheme is not likely to
be downsized.
(c): The major steps taken by Government to help the textile sector is placed at Annexure.
(d), (e) & (f): No, Sir. Banks cannot refuse to reimburse interest subsidy under the Technology
Upgradation Fund Scheme. As mentioned above, there exists budget provision and Government is
committed to provide funds to banks.
Annexure
Important measures taken by Government in recent past to help Indian textile sector
(i) To improve productivity and quality of cotton for manufacture and export of competitive
downstream textile products, Government has launched the Technology Mission on Cotton (TMC).
(ii) To facilitate the modernisation and upgradation of the textile industry both in the organised
and unorganized sectors, Government has launched the Technology Upgradation Fund Scheme (TUFS).
The Scheme has been further fine tuned to increase rapid investments in the targeted sub-sectors
of the textile industry. The cost of machinery has been further brought down by reducing the
customs duty on imports.
(iii) To provide the textile industry with world-class infrastructure facilities for setting up
their textile units meeting international environmental and social standards, a Public-Private
Partnership (PPP) based Scheme known as the `Scheme for Integrated Textile Park (SITP)` has been
introduced in August 2005.
(iv) In 2004-05 Budget, the entire textile sector, except for man-made fibre and filament yarn
was provided optional exemption from excise duty.
(v) Government has launched the Debt Restructuring Scheme w.e.f. Sept., 2003 with the principal
objective to permit banks to lend to the textile sector at 8-9% rate of interest.
(vi) In order to cater to the growing skilled manpower requirements at shop floor level, Government
is providing assistance for strengthening existing and opening new Apparel Training and Design
Centres (ATDCs).
(vii) Government has allowed 100% Foreign Direct Investment in the textile sector under automatic
route.
(viii) Government has de-reserved the readymade garments, hosiery and knitwear from SSI sector so
that large scale investments may be encouraged in these sectors.
(ix) National Institute of Fashion Technology (NIFT) has been set up to provide the leadership
role in sensitizing the Industry to the concept of value addition by inducting trained
professionals to manage the industry. This has resulted in an increased demand for trained
professionals in various sectors servicing the industry.
(x) In order to promote the Technical textiles, Government has approved a Scheme, which aims at
baseline survey of technical textiles units and for setting up of four Centers of Excellence, one
each for Agrotech, Buildtech, Meditech and Geotech with the total outlay of Rs.48 crore for 11th
Plan period.