The Ministry of Textiles announced on May 1 the restructuring of the
popular Technology Upgradation Fund Schemes (TUFS) to boost investments
in the textiles sector. All segments within the textiles industry are
expected to benefit from the scheme, which will be in effect from April
28, 2011 to March 31, 2012. It will provide a maximum subsidy across the
textiles supply chain from spinning, power loom, garmenting, processing
and technical textiles
.The objective of the restructured scheme is to leverage investments
in the textiles sector by encouraging balanced growth across the value
chain, the government says .
.Spinning units with matching capacity in upward processing are
eligible for 5% interest reimbursement, while standalone spinning
upgradation projects are eligible for 4% interest reimbursement.
Value-addition sectors such as power looms, garmenting, processing and
technical textiles are in for additional benefits. The government will
provide a 10% capital subsidy and 5% interest reimbursement on projects
involving new shuttleless looms. Processing, garmenting and technical
textiles sectors can get 10% capital subsidy and 5% interest rebate on
specified machinery. The interest reimbursement will be for a maximum
period of 7 years .
Date:5/10/2011
Source:Egytex.com