GOVERNMENT OF INDIA
MINISTRY OF TEXTILES
OFFICE OF THE TEXTILE COMMISSIONER
POST BAG NO. 11500, MUMBAI - 400 020
Fax: 022 – 22002495, E-mail: dirss@txcindia.com

Website: www.txcindia.com
No. 28(19)/2005-MS/ Date: 21st April, 2005

Circular No. 1
(2005-2006 Series)

Sub: Technology Upgradation Fund Scheme (TUFS) –
Credit Linked Capital Subsidy @ 20% under TUFS (CLCS@20% -TUFS) for decentralized powerloom sector.

1)

Clarification regarding the ceiling of 20% capital subsidy under CLCS@20%-TUFS.

Reference is invited to para 1 (i) of Circular No.6 (2004-2005 series) dated 25th Jan., 2005 wherein it was mentioned that with effect from 13th Jan., 2005 Govt. has approved the increase in the capital ceiling for machinery from Rs.60 lakh to Rs.1 crore for decentralized powerloom sector under CLCS@20%-TUFS.  A query has been raised as to whether the capital subsidy is continuing at Rs.12 lakh or it has also been increased to Rs.20 lakh.   In this regard, it is clarified that since the capital ceiling for machinery has been increased from Rs.60 lakh to Rs.1 crore, the ceiling on capital subsidy has also been increased from Rs.12 lakh to Rs.20 lakh with effect from 13th Jan., 2005.

2)

Clarification regarding the criteria for eligibility of increased ceiling of 20% capital subsidy from Rs.12 lakh to Rs.20 lakh under CLCS@20%-TUFS for decentralized powerloom sector. 
 
        The criteria for deciding the eligibility for enhanced capital subsidy of 20% (i.e., Rs.20 lakh) is as under :
Indigenous looms : The purchase date of loom is on or after 13th Jan., 2005.
Imported looms : Bill of entry is on or after 13th Jan., 2005.
3) 

Fixation of benchmarked price of second hand imported shuttleless looms of vintage exceeding 10 years and upto 15 years with a residual life of 10 years under CLCS@20%-TUFS.

Reference is invited to para 1 (iii) of Circular No.9 (2004-2005 series) dated 26th Feb., 2005 wherein it was mentioned that the vintage period of second hand imported projectile, rapier, airjet and waterjet shuttleless looms has been increased from 10 years to 15 years with a residual life of 10 years under TUFS with effect from 22nd Feb., 2005.  The cut-off date for deciding the eligibility will be Bill of Entry dated 22-02-2005 or later.  The benchmarked price for the second hand imported shuttleless looms of vintage exceeding 10 years and upto 15 years has been fixed under CLCS@20%-TUFS as under:

Benchmarked prices for 2nd hand shuttleless imported looms of vintage exceeding 10 years and upto 15 years and residual life of 10 years

Sr. No.

Description of the second hand imported machinery with vintage exceeding 10 years and upto 15 years and residual life of 10 years

Specification / Models

Upper ceiling on Benchmarked price for subsidy purposes.

(Rs. lakh)

1

Water jet looms with tappet/cam

Irrespective of the speed/width

3.60

2

Water Jet looms with dobby/Jacquard

Irrespective of the speed/width

4.40

3

Projectile loom with tappet/cam

P-7100, P-7150,

P-7200, P-7250

9.60

Projectile loom with dobby

P-7100, P-7150,

P-7200, P-7250

11.20

Projectile loom with tappet

P-Lean

8.00

4

Airjet loom with tappet/cam

Irrespective of the speed/width

8.40

5

Airjet loom with dobby

Irrespective of the speed/width

9.80

6

Rapier loom (with/without dobby)

Insertion rate of

350-500 meters/min.

1.00

7

Rapier loom (with/without dobby)

Insertion rate of

501-750 meters/min.

3.60

8

Rapier loom without dobby

Insertion rate of

750 meters/min.

6.40

9

Rapier loom with dobby

Insertion rate of above 750 meters/min.

8.00

 

Note:

Prices above are CIF prices.  Subsidy will be admissible on actual CIF price (subject to above ceiling) plus actual customs duty.

The above clarifications in the TUF scheme may please be brought to the notice of all concerned.

(Smt Shashi Singh)
 Director

 

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