Textile sector seeks extension of TUFs period

New Delhi: The textile industry has sought continuation of the interest subsidy scheme extended by the Government under its Technology Upgradation Fund Scheme (TUFS) for another five years to be co-terminus with the 11th Five-Year Plan period.

The scheme was floated at the beginning of the current Plan period for modernisation of the textile sector and expires on March 31, 2007.

'Proactive policy framework, calibrated fiscal interventions like rationalisation of excise duties and TUFS were key drivers of growth. The reports that TUFS may not be rolled over after its expiry in March 2007 has come as a dampener to the excitement of the industry and will have severe growth implications,' said Confederation of Indian Textile Industry Chairman, Mr Shekhar Agarwal. Initially, not many units came forward to avail themselves of its benefits but after the phasing out of the quota regime in global textile trade, the number of applicants under the scheme has gone up substantially, he said.