Government approves ‘Amended Technology Upgradation Fund Scheme’ for Textiles industry. It will generate one lakh crore rupees investment & create over 30 lakh jobs
Government has approved a scheme to boost Make in India in textiles that would help in generating Rs one lakh crore investment and create 30 lakh jobs in the country.
Nearly 85 per cent of textiles industry is in the small and medium sector. Textiles sector is amongst the largest employers in the country.
Under the scheme, which was approved by the cabinet committee on economic affairs chaired by Prime Minister Narendra Modi, government will provide subsidy on capital investment, particularly in small and medium enterprises.
Under the new scheme, there will be two broad categories:
- Apparel, Garment and Technical Textiles, where 15 percent subsidy would be provided on capital investment, subject to a ceiling of 30 crore rupees for entrepreneurs over a period of five years.
- Remaining sub-sectors would be eligible for subsidy at a rate of 10 percent, subject to a ceiling of Rs.20 crore on similar lines.
Called ‘Amended Technology Upgradation Fund Scheme (ATUFS), it would replace the existing Revised Restructured Technology Upgradation Fund Scheme (RRTUFS).
The new scheme will specifically target employment generation and exports by encouraging apparel and garment industry. The units providing employment to women will be encouraged.
India exports nearly $20 billion of textiles, which is to be more than doubled to $50 billion in the next five years.
The scheme will also promote technical textiles, a sunrise industry with huge export and employment potential.
A budget provision of Rs.17,822 crore has been approved, of which Rs. 12,671 crore is for committed liabilities under the ongoing scheme, and Rs. 5,151 crore is for new cases under ATUFS.
Office of Textile Commissioner (TXC) is being reorganised; its offices shall be set up in each state. Officers of the TXC shall be closely associated with entrepreneurs for setting up the industry, including processing proposals under the new scheme, verifying assets created jointly with the bankers and maintaining close liaison with the State Government agencies.
