|
Technology Upgradation Fund Scheme (TUFS) for Textile & Jute Industry is probably
the first industry specific financing scheme launched by the Govt. for
modernisation and technology upgradation. IndianTextile
industry,though, mammoth in size, lacks
competitiveness internationally primarily due to its
technological obsolescence and lack of economies of scale. It is imperative for
the Indian Textile Industry to upgrade its technology at par with international
level to withstand the competition during post MFA regime when the textile
trade and industry will be liberalised & globalised. High cost of capital
in India is understood to be the most important factor inhibiting technology up
gradation of the industry. The scheme which provides for 5% interest
reimbursement, had been launched by the Govt. with effect from 1-4-99 for a
period of 5 years with an objective to make available adequate capital from the
banks and financial institutions for modernisation at internationally
comparable rate of interest. Technology levels are bench marked in
terms of specified machinery
2.
Though, the scheme was launched with high
expectation, the
performance of the industry in availing of assistance
from the scheme during the last 47 months of its operations has not been very
much encouraging, though about 1474 textile / jute units (majority in small
scale sector) have availed of assistance under the scheme. Govt. have received
a large number of representation from the industry and associations suggesting
modification / relaxation / amendment in the scheme. All those suggestions were
examined carefully and placed in the TAMC meetings and the committee approved a
large number of modification which were subsequently approved by IMSc.
Amendments, inter-alia, include addition of machinery in the list of eligible
machinery, more number of second hand imported machinery, CLCS- TUFS for Small
Scale Sector, additional instruments covered under the scheme like Non
Convertible Debentures (NCD), Deferred Payment Guarantee (DPG) and Lease
Finance, permission to ,convert RTL to FCL and vise-versa on annual basis, a host of other relaxations in financial and
technology norms and addition to the list of Banks / Fls co-opted by 'the nodal
agencies. An improved variety of handloom and a number of auxiliary equipments
including testing equipments used by the handloom weavers have also been
covered under the scheme, In short, the scheme has been made more flexible and
industry friendly.
3. The booklet on the scheme was last updated by
incorporating the amendments made upto 31-07-2000. However, subsequently since
a lot of modifications have been made, it is felt necessary to bring out an
updated version of the booklet as on 31-03-2003, The booklet, like earlier
editions, contains Govt. Resolution (GR) on TUFS, general eligibility
conditions, constitution of Inter-Ministerial Steering Committee (TMSC) &
Technical Advisory and Monitoring Committee (TAMC) and Financial Norms of Nodal
Agencies like duration of the loan, amount of loan, promoters contribution,
repayment norms etc. for each nodal agencies. List of co-opted PUs (Nodal
Agency wise) are also given. List of eligible machinery are given in the Annex
A to H of the booklet.
4. I hope the textile industry and other
organisations connected with the industry, more particularly the investors
under TUFS will make use of the booklet. I thank the industry, associations,
nodal agencies and co-opted PUs for their co-operation in implementing the
scheme and for their valuable suggestions. With such relaxation made and
flexibility provided to the scheme, I wish more textile and jute industrial
units from all segments and sectors will make use of the scheme for availing of
financial assistance for technology upgradation & modemisation in order to
create a healthy and globally competitive Indian Textile Sector.
|
