Govt unlikely to settle Rs 3,000-crore textile industry dues of 'blackout' period

Starting from June 20, 2010, and ending on April 27, 2011, the blackout period refers to the time when the govt had halted subsidy payment

Government is unlikely to settle Rs 3,000-crore dues towards committed liabilities arising out of 'blackout and leftout' period cases under technology upgradation scheme for the textile industry.

"They (liabilities related to the blackout/leftout period cases) will be given a silent burial. Of course, there is clamour from the industry but as of now, there is no plans to settle those liabilities amounting to Rs 3,000 crore," a top Textiles Ministry official told PTI.

The official cited paucity of funds as the main reason behind it.

The blackout period (June 20, 2010 to April 27, 2011) refers to the time when the government had halted subsidy payment temporarily, seeking to change the contours of the Technology Upgradation Fund Scheme (TUFS) from an open-ended scheme to a closed-ended one, and announced the introduction of the revised scheme only from April 2011.

For those who had invested during those 10 months of blackout period were left out and are awaiting a decision on the eligibility of TUFS on the blackout period.

The settlement of committed liabilities has been a grey area after the government did not mention it when it notified the Amended Technology Upgradation Fund Scheme (ATUFS) for the textile sector earlier this year.

The Union Cabinet approved the ATUFS in December, 2015, in place of the Revised Restructured TUFS for technology upgradation of textiles industry — a move aimed at boosting job creation and exports for the sector.

"Textile industry is continuously under severe stress since April 2014 due to the non disbursal of committed liabilities under TUFS scheme and several hundreds of spinning mills are facing closure as they are likely to become NPAs (non-performing assets). Our request is to urgently disburse the committed liabilities under TUFS scheme and extend all the export benefits for cotton yarn under MEIS (Merchandise Exports from India Scheme) and IES on par with other textile products. Otherwise, such decisions of officials will lead to a dangerous situation of closure of these mills," Binoy Job, secretary general, Confederation of Indian Textile Industry said.