Extension of TUFS Scheme
The Indian Textiles Industry has an overwhelming presence in the Indian economy with a contribution of nearly 14% of India’s Industrial production. Apart from providing one of the basic necessities of life, the textile industry also plays a pivotal role through its contribution to industrial output, employment generation and export earnings of the country. It is said that Rs.1 lakh of investment in machinery in the textile industry generates employment for seven persons in India. Therefore, to strengthen the textile industry in India and create globally competitive textile players, the TUFS Scheme was introduced by the Government wherein subsidy was provided for capital investment in the textile industry. In this article, we look at TUFS Scheme and the extension of TUFS Scheme in the 12th plan period.
The Technology Upgradation Fund Scheme (TUFS) was introduced in 1999 to attract investments for modernization of the Indian Textile Industry. The scheme initially provided for 5% interest reimbursement. The scheme was initially approved from April, 1999 to March 31st, 2004. Subsequently, the scheme was extended in 2004 and again in 2007 with modifications and further restructured upto 31/03/2013.
Now the TUFS Scheme has been extended until 31.3.2017 under the 12th plan period. The newly extended TUFS Scheme is officially named as the Revised Restructured – TUFS Scheme.
TUFS Scheme Eligibility Criteria
TUFS Scheme benefit is available for benchmarked machinery in the following activities:
- Cotton ginning and pressing;
- Silk reeling and twisting;
- Wool scouring, combing and carpet industry;
- Synthetic filament yarn texturising, crimping and twisting;
- Viscose Staple Fibre (VSF) and Viscose Filament Yarn (VFY);
- Weaving, knitting and fabric embroidery;
- Technical textiles including non-wovens;
- Garment / design studio / made-up manufacturing;
- Processing of fibres, yarns, fabrics, garments and made-ups;
- Production activities of Jute Industry.
Technology Upgradation means induction of state-of-the-art or near-state-of-theart technology. Therefore, to be eligible for the TUFS scheme, at least a significant step up from the present technology level to a substantially higher one for such trailing segments would be essential.
Existing textile businesses with or without expansion and new units by existing textile players are eligible for the TUFS Scheme. Further, Entrepreneurs, setting up new units with the appropriate latest technology (eligible technology) are eligible to receive the TUFS subsidy.