To boost job creation and exports, the new government at the Centre should resolve issues related to Technology Upgradation Fund Scheme (TUFS), Southern India Mills’ Association (SIMA) has said. The association has also appealed for release of ₹9,000 crore pending TUFS subsidies on a fast track. The Narendra Modi-led NDA government will take oath on May 30. The textile industry is the single largest employment provider in India, next only to agriculture. It employs over 110 million people, especially rural women and people below the poverty line, and enables inclusive growth of the nation. Realising this importance, TUFS was launched by the then NDA government in 1999. TUFS, the flagship programme of the ministry of textiles, attracted over ₹3.75 lakhs crore of investments in during the last two decades and created jobs for more than 10 million people, and enabled the Indian textile industry to become globally competitive and increase its exports. “The scheme was very effective and industry-friendly till 2007. But later many complications were brought in the guidelines which got further complicated at every stage. This has resulted in a backlog of ₹9,000 crore of TUFS subsidies severely affecting the financial conditions of new investors. This has stalled the potential growth, job creation and forex earnings opportunities of the nation,” SIMA chairman P Nataraj said in a press release. Nataraj said that resolving issues in the TUFS and releasing the pending TUFS subsidies to the tune of ₹9,000 crore on a fast track would help the industry to create jobs for lakhs of people immediately. He added that resolving the TUFS issues would bring huge investments across the country thus creating jobs for millions of people and boost exports. “The special export garment package and enhanced RoSTCL benefits would yield the desired results only when the TUFS issues are resolved,” he said.
Source – Fibre2Fashion.
