Extension of tech fund scheme welcomed

Coimbatore: Textile industry is buoyed by the Finance Minister's announcement on continuing the technology upgradation fund scheme (TUFS) for the industry into the 11th Plan Period.

Reacting to the Union Budget proposals for 2007-08, the Southern India Mills Association (SIMA) Chairman, Mr S.V. Arumugam, said the extension of TUFS would help in balanced planning of new investment on capacity building and modernisation.

The Association has also appreciated the higher financial allocation for TUFS at Rs 911 crore from the current allocation of Rs 535 crore, which will enable the Government to service more TUFS loan applications.

The other positive moves, according to the SIMA chief, are extension of the handloom cluster development programme to an additional 150 clusters with a higher capital outlay of Rs 321 crore for 2007-08 ( Rs 241 crore), and increase in spending from Rs 189 crore to Rs 425 crore for the integrated textile park projects.