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GOVERNMENT OF INDIA
Circular No. 4
Sub: Technology Upgradation Fund Scheme (TUFS). 1. Clarification issued by Technical Advisory–cum-Monitoring Committee (TAMC) of TUFS in its 16th meeting held at Mumbai on 1st August 2002. (i) Eligibility of Handloom sector under TUFS. It is clarified that handloom sector is eligible for taking the benefits of TUFS for all machinery already listed in the GR on TUFS as amended from time to time and permitted for other sectors including powerloom and mill sector. In handloom sector only weaving activity is different from powerloom and mill sector while other activities particularly processing are same. Accordingly, Sr. number CC of Annexure D-1 has been renumbered as CC(a) and the following machinery for handloom sector have been included in the Annexure D-1 of G.R. on TUFS. The following looms operated without the use of power falling under CC(b) to CC(e). CC(b) Handlooms of fly shuttle frame loom fitted with Dobby like lattice /barrel/tappet/draw bar/iron frame vertical/centre closed shed/wooden frame vertical/double cylinder iron border, Jacquard like single lift single cylinder wooden frame/single lift single cylinder iron frame bar/double lift single cylinder iron frame/double lift double cylinder iron frame/janata/lino; Combination of jala and dobby or jacquard; Fly shuttle sley fitted with drop box on one side/drop box on both sides /circular shuttle box/pick & pick sley; CC( c ) Fly shuttle frame loom fitted with let off motions like lever and weight let off motion/special spring motion/rope let off motion/weight system/spring system. CC(d) Fly shuttle frame loom fitted with take up motion like ratchet & pawl motion/3 wheel Ichalkaranji type motion/5 wheel take up motion without emery roller/7 wheel take up motion. CC(e) Handlooms fitted with special attachments like catch card system/swivel loom/lappet motion/terry motion/lino mechanism/chennaile weaving (automatic cutting of chennaile while weaving), metal frame handloom/wider width wooden frame handloom/long length cloth weaving mechanism etc. Note: In addition, handloom units may also be provided with piano card punching machine/electronic card punching machine. CC(1) Winding machine with multi spindle for preparation of pirns/bobbins/drums operated by hand/peddle/power. CC(2) High Speed Doubling machine having spindle fitted on bolster with ball bearing. CC (3) The mobile textile quality testing equipment only for handloom sector and capable of testing all of the following : * Colour fastness to washing at about 40 degree celsius. * Colour fastness to crocking/rubbing * Shrinkage * Ends-Picks per inch * Count of yarn * Percentage crimp of yarn * Fabric width, and * Grams per Square meter etc. The effective date of eligibility will be the date of the meeting, i.e, 1-8-2002. (ii) Additional machinery for readymade garment industry. Sand Blasting/Brushing machine, Colour matching machine and Automatic machine for making knit shirt center plaits have been included in Annex-E of G.R. on TUFS as given below : a.57. Sand Blasting/Brushing machine a.58. Colour matching machine a.59. Automatic machine for making knit shirt center plaits It is clarified that ‘Fusing press’ at S.No.a.22 of Annex-E of G.R. on TUFS also covers all other fusing machines like cuff & collar fusing machine, compact liner straight fusing machine, fully automatic continuous straight fusing machine etc. (iii) Eligibility of of Jute Waste (Caddies) fired boiler. Jute Waste (Caddies) fired boiler has been included under TUF Scheme, subject to the clearance from pollution control board. Accordingly the existing entry at sr. no. IV.1.(b) of Annexure F-1 to F-3 and sr. no. III.1.(b) of Annexure F-4 has been amended as below : “Husk fired / Jute waste (caddies) boiler having additional features, viz., pneumatically controlled filter mechanism, electrostatic precipitator and micro dust collector below 15 Tonnes Per Hour (TPH) having cyclone / multi cyclone device. However, for such boilers the above three features are not required subject to the condition that specific approval or no objection of respective State Pollution Control Board”. The effective date of modification will be the date of 9th meeting of IMSC, i.e., 13.06.2001, in which the decision to include husk fired boilers was taken. (iv) Effective date of the modification permitting TUFS incentive after taking over the existing loan under TUFS by another PLI. It is clarified that the effective date of eligibility for the above modification in the scheme is 23rd May 2002, i.e., the date of 15th meeting of the TAMC in which the above decision was taken. (v) Convertability of foreign currency loan (FCL) into rupee term loan (RTL) under TUFS. Conversion of FCL in to RTL has been permitted under TUFS subject to the condition that portfolio (outstanding balance) remains unchanged and overall repayment period does not exceed 10 years. This facility will be provided only once to a project. The effective date of eligibility of this modification will be the date of the 16th meeting of TAMC, i.e., 1-8-2002, in which the above decision was taken. (vi) Additional machinery for processing sector. “Rope opening line with open width squeeze mangle for knitted fabrics” has been included under TUFS at sr.no. b.I.15 of Annexure F-2 of G.R. on TUFS. The effective date of modification will be 1-4-1999. The above modifications may please be brought to the notice of all concerned. (Smt Shashi Singh)
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