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New textile projects in State may be rescheduled
MADHYA PRADESH Textile Mills Association on Tuesday said new projects coming up in the State could be rescheduled and expansion plans of other units put on hold, if the Union Government discontinues technology upgradation fund scheme (TUFS) by March 2007.
MADHYA PRADESH Textile Mills Association on Tuesday said new projects coming up in the State could be rescheduled and expansion plans of other units put on hold, if the Union Government discontinues technology upgradation fund scheme (TUFS) by March 2007.
Association secretary M C Rawat told Hindustan Times that the scheme was launched in 1999 under which banks give a concession of 5 percent on loans granted for modernisation of the textile industry and the government reimburses the amount. However, according to reports, the Finance Ministry plans to withdraw the scheme by March 2007.
“The scheme has played an important role in the development and modernisation of the textile industry in the State, and as many as 25 units were disbursed loans to the tune of Rs 314 crore by the banks and financial institutions till July 2006,” he said.
Rawat said the discontinuation of the scheme beyond March 2007 at a time when the world textile market has been fully opened and the industry is facing tough competition from other Asian countries would be a setback to the process of development, achievement of export targets and generation of additional employment opportunities, which have been planned by the industry.
He said the process of capacity building plans with huge investment, which are currently in progress in various units of this industry, could reach a reasonable level and can run on its own, if the assistance under the scheme is continued till the end of next Five Year Plan.
“Even the Union Textile Minister Shankar Singh Vaghela had on various occasions favoured the extension of TUFS up to 2010 to meet the industry’s ambitious export targets,” Rawat said. The association recently met Central Textile Commissioner and submitted a memorandum in this regard.
