Textiles ministry giving out less for tech upgrading

The government announced a Rs 6,000-crore package for the sector to generate 10 million jobs and boost exports by $30 billion

Disbursement of funds under the Technology Upgradation Fund Scheme (Tufs) of the Union textiles ministry shows a dismal picture.

The central government had recently announced a Rs 6,000-crore package for the sector, with the aim of generating 10 million jobs and boost export by a cumulative $30 billion over three years.

Against Rs 24,000 crore of disbursements under Tufs in 2008-09, it was only Rs 11,000 crore in 2014-15 from a total allocation of about Rs 17,800 crore under the various Tufs —modified, restructured and revised-restructured. “From 2013, investments have come down. Tufs disbursement has and the government has also reduced subsidies,” said K Selvaraju, secretary-general of the Southern India Mills Association.

The disbursement excluded the spinning industry, where the potential is high for new investment.

“The earlier Budget saw an allocation of Rs 1,480 crore, as against a backlog of Rs 8000 crore. Only certain mills received funds, till December 2015,” said a source, on condition of anonymity.

And, in apparel export, there is stiff competition from Bangladesh and Vietnam, growing at 14 and 11 per cent annually; India's is eight per cent. The industry wants  hastening of Tufs disbursement, especially to spinning, weaving and fabric making units, to boost the overall apparel export. “Under the new minister, we are hopeful all these issues will be sorted out,” said Selvaraju.

Meanwhile, according to Confederation of Indian Textile Industry (CITI), the reduction in disbursement is also a conscious call in order to phase out of the previous TUF schemes to make way for the Amended TUF Scheme (A-TUF) and clear the back log.