Govt to resolve committed liabilities of Rs 3K cr under TUFS

Government is making efforts to resolve the issue of settlement of committed liabilities of around Rs 3,000 crore arising out of 'blackout and leftout' period cases under technology upgrade scheme for textile industry, Union Minister Santosh Gangwar said.
The government last week notified the Amended Technology Upgradation Fund Scheme (A-TUFS) for textile sector but did not mention about the committed liabilities during 'blackout and leftout' period in 2010-11.
"We are working towards resolving the issue of blackout and leftout period cases," Gangwar told PTI.
Government has brought A-TUFS in place of the Revised Restructured TUFS (RRTUFS) for technology upgradation of textiles industry, a move expected to boost job creation and exports in the sector.

During 2010-11, the RRTUFS was suspended for 10 months but eventually restored as a closed-ended scheme and restricted to future sanctions and committed liabilities reported by banks for sanctions already issued.
The closed ended scheme was introduced without sufficient notice from the government for preparation on part of lending institutions.

So those who had invested in those 10 months in the so called blackout period of 2010-11 were leftout and are still awaiting a decision on the eligibility of TUF scheme on the black out period.
"Industry is happy that the government has recognised the twin potential of the textile sector to generate maximum employment and economic development. However, we hope that the government will take care of the committed liabilities in coming days," Confederation of Indian Textile Industry (CITI) Secretary General Binoy Job said.

He pegged the quantum of liabilities under the blackout and left-out period cases at around Rs 3,000 crore.
The amended scheme would give a boost to Make in India initiatives in the sector and is expected to attract investment to the tune of Rs 1 lakh crore and create over 30 lakh jobs.
A-TUFS will be credit-linked and projects for technology upgradation covered by a prescribed limit of term loans sanctioned by the lending agencies will only be eligible for grant of benefits under it.
It will be effective for a period of seven years, up to March 31, 2022.

Under the new scheme, there will be two broad categories -- apparel, garment and technical textiles -- where 15 per cent subsidy would be provided on capital investment, subject to a ceiling of Rs 30 crore for entrepreneurs over a period of five years.
The remaining sub-sectors would be eligible for subsidy at a rate of 10 per cent, subject to a ceiling of Rs 20 crore on similar lines.
The implementation of the scheme would be executed and monitored online under iTUFS, launched in April 2015.