Centre takes series of measures for technology upgradation in Textile Industry

Category: General

Country: India

The ongoing version of the scheme i.e. Amended TUFS (ATUFS) launched in January 2016 aims to augment investment, productivity, quality, employment, exports alongwith import substitution.

July 26, 2021 10:16 IST | India Infoline News Service

Minister of State for Textiles, Darshana Jardosh has informed that with a view to catalyze technology upgradation and modernization in textile industry in the country to make it globally competitive, Ministry of Textiles is implementing Technology Upgradation Fund Scheme (TUFS) since 1999.

The ongoing version of the scheme i.e. Amended TUFS (ATUFS) launched in January 2016 aims to augment investment, productivity, quality, employment, exports alongwith import substitution.

The Government has approved Scheme for Remission of Duties and Taxes on Exported Products (RoDTEP) for all export goods excluding garments and made-ups with effect from January 1, 2021 to boost exports and for making them globally competitive.

Under this scheme, embedded Central, State and local duties/taxes are refunded to the exporters. On July 14, 2021 the Government has decided to continue Rebate of State and Central Taxes and Levies (RoSCTL) Scheme w.e.f January 1, 2021 till March 31, 2024 for textile exporters of Apparel/Garments (Chapters-61 & 62) and Made-ups (Chapter-63) in exclusion from RoDTEP scheme for these chapters.

One time capital investment subsidy (CIS) is provided under ATUFS for eligible investment on benchmark machinery. Rates of CIS provided to various segments along with ceiling under ATUFS are as follows:
-For segment of Garmenting, Technical Textiles, the Rate of CIS is 15% subject to an upper limit of Rs. 30 Cr.
-For Weaving for brand new Shuttle-less Looms (including weaving preparatory and knitting), Processing, Jute, Silk and Handloom, the rate of CIS is 10% subject to an upper limit of Rs. 20 Cr.
-For Composite unit /Multiple Segments - If the eligible capital investment in respect of Garmenting and Technical Textiles category is more than 50% of the eligible project cost, the rate of CIS is 15% subject to an upper limit of Rs. 30 Cr.
-For Composite unit/ Multiple Segments - If the eligible capital investment in respect of Garmenting and Technical Textiles category is less than 50% of the eligible project cost, the rate of CIS is 10% subject to an upper limit of Rs. 20 Cr.

Courtesy: https://www.indiainfoline.com/article/news-top-story/centre-takes-series-of-measures-for-technology-upgradation-in-textile-industry-121072600023_1.html