India Textiles Ministry package giving out less Tufs disbursement
The central government in its recently announced a INR 6000crore (USD 901.89 million) package for the sector, aim of generating 10 million jobs and boost export by a cumulative USD 30 billion over three years. But disbursement of funds under the Technology Upgradation Fund Scheme (Tufs) of the Union textiles ministry shows a dull picture
Against INR 24000 crore (around USD 3.60 billion) of disbursements under Tufs in 2008-09, it was only INR 11000 crore (around USD 1.65 billion in 2014-15 from a total allocation of about INR 17800 crore (USD 2.68 billion) under the various Tufs —modified, restructured and revised-restructured. From 2013, investments have come down. Tufs disbursement by the government has also reduced subsidies, said K Selvaraju, secretary-general of the Southern India Mills Association.
The disbursement excluded the spinning industry, where the potential is high for new investment.
The earlier Budget saw an allocation of INR 1480 crore (around USD 222.46 milliion), as against a backlog of INR 8000 crore (USD 120.2 million). Only certain mills received funds, till December 2015, said a source, on condition of anonymity.
The apparel industry wants hastening of Tufs disbursement, especially to spinning, weaving and fabric making units, to boost the overall export. As apparel exports is facing stiff competition from Bangladesh and Vietnam, growing at 14 % and 11 % annually; India’s is eight percent only. Selvaraju said that under the new minister, they are hopeful all these issues will be sorted out.