The textile industry is the single largest employment provider in the country next only to agriculture by employing over 110 million people especially the rural women and people below the poverty line and enables inclusive growth of the Nation.
Realizing the importance of making this sector globally competitive and grabbing the opportunities emerging in the post-WTO era, NDA government launched the Technology Upgradation Fund Scheme (TUFS) during 1999 and later the same Government extended the Scheme for the period up to 31st March 2022 by allocating Rs.17,822 crores. This budget allocation included Rs.12,671 crores for committed liabilities of Modified Technology Upgradation Fund Scheme (M-TUFS), Revised Technology Upgradation Fund Scheme (R-TUFS) and Rs.5151 crores for Amended Technology Upgradation Fund Scheme (A-TUFS).
The flagship programme of the Ministry of Textiles viz., TUF Scheme attracted over Rs.3.75 lakhs crores of investments in the textile industry during the last two decades and created jobs to over 10 million people apart from enable the Indian textile industry to become globally competitive and increase its exports by manifolds.
The Scheme was very effective and industry-friendly till 2007 when the Scheme was open ended and later many complications were brought in the guidelines which got further complicated at every stage. This has resulted in a backlog of Rs.9,000 crores of TUF subsidies severely affecting the financial conditions of the new investors. This has stalled the potential growth, job creation and forex earnings opportunities of the nation.
In a Press Release issued here today, Mr.P.Nataraj, Chairman, The Southern India Mills’ Association (SIMA) has appealed to the new government to resolve TUF issues to boost job creation and exports. He felt that resolving issues in the TUF Scheme and releasing the pending TUF subsidies to the tune of Rs.9,000 crores on a fast track would help the industry to create jobs for lakhs of people immediately. He has stated that resolving the TUFS issues would bring huge investments across the country thus creating jobs for millions of people and boost exports. Mr.Nataraj has stated that special export garment package and enhanced RoSTCL benefits would yield the desired results only when the TUFS issues are resolved.