Rs. 30,000/ crore disbursed under TUFS during the last 20 years helped only foreign, especially Chinese Machinery Manufacturers.

In an interactive meeting with various textile industry association of south India held last week at Coimbatore, Union Textile Secretary, Shri. Ravi Capoor has stated that Government will be relooking TUF scheme and will revamp the same completely. Secretary said, though more than Rs. 30,000/ crore have been disbursed under various versions of the scheme during the last 20 years, the benefits to the industry is not visible except in spinning sector. Majority of the machinery procured under the scheme by the industry benefited foreign, especially Chinese manufacturers/ suppliers and not domestic ones. Substantial quantity of second hand machinery also imported.

The scheme did not impact much on the modernisation and expansion of domestic textile machinery industry, except spinning machinery, he said. India has become a dumping ground for China’s Textile machinery. That was not the intent of the scheme when it was formulated. Overall benefit of the scheme to the industry is far from satisfactory. This has necessitated the need for total overhaul of the scheme which is under way.

Mitigating Financial Crunch faced by the Textile Industry

Regarding financial problem, especially shortage of working capital faced by the textile industry, Shri. Capoor stated that Union Textile Minister had written to Finance Minister and he (Capoor) has written to the Secretary, Dept. of Financial Services, requesting Banks/FIs to consider sympathetically the request from the textile industry for  restructuring repayment schedule of term loan, grant moratorium on repayment of term loan, funding of accumulated interests and related reliefs etc.