Government is implementing a Credit Linked Scheme called Amended Technology Upgradation Fund Scheme (ATUFS) for technology upgradation of the textiles industry including MSMEs to facilitate augmenting of investment, productivity, quality, employment, exports along with import substitution in the textile industry. The scheme envisages to promote ease of doing business in the country and achieve the vision of generating employment and promoting exports through “Make in India’’ with “Zero effect and Zero defect” in manufacturing. Every eligible individual entity is entitled for reimbursement of Capital Investment Subsidy (CIS) under this scheme, as per the following rates:
| SR.No. | Segment | Rate of Capital Investment Subsidy (CIS) |
| 1. | Garmenting, Technical Textiles | 15% subject to an upper limit of Rs 30 crores |
| 2. | Weaving for brand new Shuttle-less Looms (including weaving preparatory and knitting), Processing, Jute, Silk and Handloom. | 10% subject to an upper limit of Rs 20 crores |
| 3(a)
|
Composite unit /Multiple Segments – If the eligible capital investment in respect of Garmenting and Technical Textiles category is more than 50% of the eligible project cost. | 15% subject to an upper limit of Rs 30 crores |
| 3(b) | Composite unit/ Multiple Segments – If the eligible capital investment in respect of Garmenting and Technical Textiles category is less than 50% of the eligible project cost. | 10% subject to an upper limit of Rs 20 crores |
To promote the handloom sector, including individual weaver and various Groups of weavers and to innovate new designs, product diversification with the help of designers, the Government of India is implementing Block Level Cluster component under National Handloom Development Programme (NHDP) and Comprehensive Handloom Cluster Development Scheme (CHCDS). Skill upgradation and distribution of upgraded looms and accessories is also provided under these Scheme.
Presently there is no proposal to collaborate with the Ministry of Commerce & Industry to encourage handloom production under one district one product.
India is the only country in the world where there is large number of handloom for production of handloom textiles/products and it has the capabilities also to further innovate in production technology on handlooms. However, to promote marketing and sales of handloom products in domestic as well as overseas markets, the Government of India facilitates and provide financial assistance for participation in overseas fairs and exhibitions and organising handloom expos across the country. Such trade events provide platform to the handloom agencies to sell their products directly to domestic as well as overseas customers by eliminating middlemen.
To promote e-marketing of handloom products, a policy frame work has been designed and under which any willing e-commerce platform with good track record can participate in online marketing of handloom products. Accordingly, 23 e-commerce entities have been engaged for on-line marketing of handloom products. Virtual platform for organising exhibitions across the globe has been adopted recently where The Indian Textile Sourcing Fair was organised through this platform on 7th, 10th and 11th August 2020. The show has attracted considerable attention of the International Buyers.
Beside above, to make the textile sector competitive by rebating all taxes/levies in international market, the Government has decided to continue the RoSCTL (Rebate of State and Central Taxes and Levies) scheme until such time the RoSCTL scheme is merged with Remission of Duties and Taxes on Exported Products (RoDTEP) scheme. For this purpose, the Government has approved adhoc allocation of funds of Rs. 7398 crore for FY 2020-21 for issuance of duty credit scrips under RoSCTL scheme. Further, in order to boost exports in MMF sector, Government has removed anti-dumping duty on PTA (Purified Terephtallic Acid), a key raw material for the manufacture of MMF fibre and yarn.
This information was given in a written reply by the Union Minister of Textiles, Smt. Smriti Zubin Irani in Rajya Sabha today.
