FICCI welcomes approval of amended TUFS by Cabinet

FICCI on Thursday welcomed the approval of the Amended TUFS (ATUFS) by the Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi.

"The approval has come as a great relief to the industry especially when the exports were declining in textile and apparel sector" said Shishir Jaipuria, Chairman, FICCI Textiles and Technical Textiles Committee.

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"The focus on employment generation and export under the new TUFS (Technology Upgradation Fund Scheme) by encouraging apparel and garment industry and promotion of technical textile sector, is indeed a welcome step which will help in furthering the cause of Make in India" said Jaipuria.

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FICCI said that the industry was earlier apprehensive that under the current review of the TUFS term loans already sanctioned may get considered in the new scheme that would have affected the projects in pipeline. FICCI therefore had requested to the Finance Minister in its meeting with him on 1st August that the new scheme whenever formulated and ready for launch should be applicable for new proposals received by the banks thereafter and all sanctioned term loans should be considered under the guidelines of existing TUFS scheme.

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The Cabinet approval has removed this apprehension and done away with the uncertainty by clarifying that all cases pending with the Office of Textile Commissioner which are complete in all respects, shall be provided assistance under the ongoing scheme and the new scheme will be given prospective effect.

Further, FICCI had requested to the Finance Minister to increase the allocation under the scheme to Rs 5000 crore which has also been accepted by making a budget provision of Rs.17,822 crore, 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.