Lok Sabha Question No. 228 (STARRED), answered on 2016-12-01
Subject: Technological Advancement in Textile Sector
Ministry: TEXTILES
Asked by: BHARTRUHARI MAHTAB, SATYA PAL SINGH

## LOK SABHA STARRED QUESTION NO.*228 TO BE ANSWERED ON 01.12.2016

## TECHNOLOGICAL ADVANCEMENT IN TEXTILE SECTOR

## *228. SHRI BHARTRUHARI MAHTAB:

DR. SATYAPAL SINGH:

## Will the Minister of TEXTILES वस्त्र मंरी

be pleased to state:

- (a) whether the textile sector is witnessing sluggish growth on account of technological constraints and other reasons, and if so, the details thereof and the reasons therefor;
- (b) the  details  of  the  schemes/programmes  being  implemented  for  the development, technological advancement and revival of sick units of  textile sector across the country;
- (c) the number of textile units benefited from the said schemes /programmes during the last two years and the current year, State/ UT-wise and Scheme/ Programme-wise;
- (d) the details of the funds provided under the said schemes/programmes during the above period, State/UT-wise and Scheme/Programme-wise; and
- (e) whether the Government has received complaints of irregularities/malpractices  in  the  implementation  of  schemes/programmes during the above period and if so, the details thereof along with the corrective steps taken/being taken by the Government in this regard?

## उत्तर

## ANSWER

## वस्त्र मंरी ( )

MINISTER OF TEXTILES

(SMT. SMRITI ZUBIN IRANI)

(a) to (e): A statement is laid on the Table of the House.

## STATEMENT REFERRED TO IN REPLY TO PARAS (a) TO (e) OF THE  LOK  SABHA  STARRED  QUESTION  No.  *228  DUE  FOR ANSWER ON 01.12.2016.

(a): There  are no visible signs of sluggish growth in the textile sector on account of technological constraints as may be seen  from the figures given for production,  exports  and  installed  capacity  of  textile  items  in  the last 3 years and the current year in the statement below:-

| Items                               | Unit         | 2013- 14   | 2014- 15   | 2015- 16   | April-Sep (Prov.)   | April-Sep (Prov.)   |
|-------------------------------------|--------------|------------|------------|------------|---------------------|---------------------|
|                                     |              |            |            |            | 2015- 16            | 2016- 17            |
| Manmade fibre (Production)          | Mn. Kg.      | 1,307      | 1,344      | 1,347      | 648                 | 698                 |
| Spun yarn (Production)              | Mn. Kg.      | 5,309      | 5,488      | 5,665      | 2,852               | 2,883               |
| Man made filament yarn (Production) | Mn. Kg.      | 1,293      | 1,248      | 1,164      | 581                 | 574                 |
| Fabrics (Production)                | Mn. Sq. mtr  | 63,500     | 65,276     | 65,505     | 32,669              | 33,196              |
| Exports of all textile items        | US $ Billion | 37.6       | 37.7       | 36.7       | 15.3*               | 14.4*               |
| Spindles                            | Million No   | 49.46      | 50.16      | 51.2       | 52.25               | 50.65               |
| Rotors                              | Thousand no. | 814        | 834        | 860        | 871                 | 843                 |

Except for the production of Man  made filament yarn, there has been no decrease in production and installed capacity    during  the  last  three  years. The export of textile  has seen only a  marginal decline.

(b) : Ministry implements various schemes for the development of handloom,  handicrafts,  infrastructure,  skill  development,  special  package for  garments,  price  support    as  well  as  for  technological  advancement. The schemes specifically  implemented  for  the  technological  advancement of  the  textile  sector    include  Ammended  Technology  upgradation  Fund Scheme (ATUFS),  Insitu upgradation of Powerloom, Technology Mission for Technical Textiles (TMTT), Scheme for Usage of Agrotextiles in North East Region  and Scheme for Promoting Usage of Geotechnical Textiles in North-Eastern Region. Details are  placed at Annexure-I. There is no plan scheme for revival of sick textile units

(c) & (d) :  The state wise releases made under  TUFS, Powerlooms TMTT, Scheme for usage of Agro Textiles and Geo Textiles in the last two years and current year is given at Annexure II(i) to II (iii).

(e) : The details of complaints of irregularities/malpractices in the implementation of the schemes received during the last  two years and the current year are at Annexure-III.  As part of the corrective steps to check recurrence of irregularities, Ministry has adopted a transparent  process of sanction and monitoring of the scheme  through a web  based  MIS i.e. I-TUFS and a PAN based identification of beneficiary units. A revised implementation mechanism is put in place wherein fund releases are based on physical inspection of machinery installed  by joint inspection teams .

## Technology Development Schemes of the Ministry of Textiles

## 1Amended Technology Upgradation Fund Scheme (ATUFS)

1.1 The Amended Technology Up-gradation Fund Scheme (ATUFS) has been notified by  the  Ministry  of  Textiles  vide  Resolution  of  even  number  dated  13.01.2016.  In accordance to the said Resolution, the financial and operational parameters and implementation mechanism for ATUFS during its implementation period from 13.01.2016 to  31.03.2022  are  given  in  Guidelines  of  ATUFS  issued  vide  Resolution  No.  6/5/2015TUFS  dt.  29.02.2016.  The  scheme  aims  to  facilitate  augmenting  of  investment  by provision of one time capital subsidy for technology upgradation in all segments of textile Industry. It will thereby  improve  productivity, quality, employment, exports along with import substitution in the textile industry.

## 1.2 Features:

Every  eligible  individual  entity  will  be  paid  Capital  Investment  Subsidy  (CIS)  under ATUF Scheme, on the eligible investment, as per the rates and the overall subsidy  cap indicated below:

| Sl. No.   | Segment                                                                                                                                                                         | Rate of Capital Investment Subsidy (CIS)   | CIS per individual entity   |
|-----------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------|-----------------------------|
| 1.        | Garmenting, Technical Textiles #                                                                                                                                                | 15% on eligible Machines                   | Rs. 30 crore *              |
| 2.        | Weaving for brand new Shuttle-less Looms (including weaving preparatory and knitting), Processing, Jute, Silk and Handloom.                                                     | 10% on eligible Machines                   | Rs. 20 crore *              |
| 3.(a)     | (a) Composite unit /Multiple Segments - If the eligible capital investment in respect of Garmenting & Technical Textiles category is more than 50% of the eligible project cost | 15% on eligible Machines                   | Rs. 30 crore *              |
| 3(b)      | (b) Composite unit/Multiple Segments - If the eligible capital investment in respect Garmenting & Technical Textiles category is less than 50%, of the eligible project cost.   | 10% on eligible Machines                   | Rs. 20 crore *              |

## Note :

* In case the applicant had availed subsidy earlier under RRTUFS, he will be eligible for only the balance amount within the overall ceiling fixed for an individual entity. The maximum subsidy for overall investment by an individual entity under ATUFS will be restricted as indicated above for respective segments.
- # In the meeting of the Union Cabinet held on 22.06.2016, under the Chairmanship of Prime  Minister,  additional  incentives  for  textile  and  apparel  sector  has  been approved.
- 1.3     The additional incentives inter-alia cover providing production incentive through Technology  Up-gradation  Fund  Scheme  (TUFS)  linked  Capital  Subsidy.  The  additional incentive to the garmenting sector has been notified vide Resolution No. 6/18/2016-TUFS dated  25.07.2016  as Scheme  for  Production  and  Employment  Linked  Support  for Garmenting Units (SPELSGU) under  ATUFS , to incentivise production and employment generation in the garmenting sector (ITC NSN Code Chapter 61,62). As per the objective of the SPELSGU, to boost employment generation in the textiles sector, the Government  would  provide  an  additional  10%  Capital  Investment  Subsidy  (CIS)  for garmenting  units  which  have  availed  15%  CIS  benefit  under  ATUFS  based  on  the achievement of projected production and employment after a period of 3 years. The period of 3  years will be counted from the date of release of ATUFS subsidy to that unit. The Scheme came into effect from the date of the Resolution of ATUFS i.e. 13.01.2016 till 31.03.2019.

## 2. In-situ Up-gradation of Plain Powerloom

The  scheme  was  launched  in  Sept,  2013  with  the  prime  objective  to  provide  financial assistance  to  economically  weaker  low-end  powerloom  units  where  the  benefit  of  the TUFS has not reached and to improve quality and productivity of the fabric. The scheme is meant for small powerloom weavers. Preference would be given to those units having maximum  two  to  four  looms  in  household  units  and  /  or  within  one  shed  among  the eligible  units.  Financial  assistance  to  the  extent  of  50%  of  the  cost  of  the  upgradation attachments  /  kits,  dobby  and  jacquard  subject  to  maximum  subsidy  Rs.  15,000/-  per powerloom  and  the  maximum  subsidy  to  a  powerloom  unit  holding  eight  powerlooms would  be  Rs.  1,20,000/.  Powerloom  permit  /  Acknowledgement  against  Industrial Memorandum  (IM)  issued  by  for  installation  of  the  Powerloom  is  a  pre-requisite  for availing of assistance under the scheme.

3.  Technology  Mission  on  Technical  Textiles: Technical  textiles  represent  a  multidisciplinary  field  with  numerous  end  use  applications.  To  remove  the  impediments hampering the production of technical textiles in the country and to meet growing demand in the domestic and export market, the government  has launched Technology Mission on Technical Textiles (TMTT) during December 2010 with two mini- missions for a period of five years (from 2010-11 to 2014-15) with a  fund outlay of Rs. 200 crore.

TMTT has been extended for another two years (FY 2015-16 & FY 2016-17) with the  left  out  fund  of  TMTT  i.e.  Rs  55.30  crore . Under  the  extension  of  TMTT,  new components  i.e.  Focus  Incubation  Centre  (FIC),  Scheme  for  Promoting  Usage  of Agrotextiles and Geotechnical textiles in India (excluding North Eastern States) have also been introduced.

4. Scheme  for  promoting  usage  of  Agrotextiles  in  North  East  Region: Ministry  of Textiles, Government of India has approved a Scheme for promoting usage of Agrotextiles in North East Region in the 12 th five year plan with an outlay of Rs. 55 crore. The aim is to encourage  utilization  of    Agrotextiles  in  improving  the  Agriculture,  horticulture  and floricultural produce of the N-E states through awareness  programmes, Development of Agrotextile  products  suitably  customized  for  use  in  the  North-Eastern  region,  Creating demonstration set-up depicting the benefit of usage of Agrotextile products suitable for the region. Further under the scheme Agrotextile-Kits will be provided to farmers containing the Agrotextile material, instructions, right methods and practices when using Agrotextile products etc.

With  increasing  acceptability  of  Agrotextiles,  entrepreneurs  are  expected  to  set  up Agrotextiles production units in the country and particularly in NE Region. The scheme has been approved during December 2012 & became operational during June 2013.

(5) Scheme  for  promoting  usage  of  Geotechnical  textiles  in  North  East  Region: A Scheme for Promoting Usage of Geotechnical textiles in North Eastern Region in the 12th five  year plan  with an outlay of Rs. 427 crore has been approved. The aim is to utilize Geotextiles in development of the infrastructure of the NE  states by providing technological  and  financial  support  by  meeting  additionality  in  project  cost  due  to  the usage  of  Geotextiles  in  existing/  new  project  in  road,  hill/  slope  protection  and  water reservoir.

With  increasing  acceptability of Geotextiles,  entrepreneurs are expected  to  set  up Geotextiles production units in the country  and particularly in NE Region. The Scheme was approved on 03 rd December 2014.

## STATE-WISE RELEASE OF SUBSIDY UNDER TUFS

## Annexure-II(i)

(Amount in crore)

| Sr. No.   |                    | 2014-15     | 2014-15          | 2015-16     | 2015-16          | 2016-17     | 2016-17          |
|-----------|--------------------|-------------|------------------|-------------|------------------|-------------|------------------|
| Sr. No.   | State Name         | No.of Cases | Subsidy released | No.of Cases | Subsidy released | No.of Cases | Subsidy released |
| 1         | ANDHRA PRADESH     | 236         | 76.34            | 201         | 40.84            | 166         | 52.85            |
| 2         | ASSAM              | 4           | 2.03             | 4           | 0.79             | 3           | 0.61             |
| 3         | BIHAR              | 2           | 0.08             | 2           | 0.04             | 3           | 2.06             |
| 4         | CHANDIGARH         | 41          | 19.98            | 24          | 10.25            | 20          | 4.25             |
| 5         | CHATTISGARH        | 2           | 0.82             | 2           | 0.84             | 0           | 0                |
| 6         | DADRA&NAGAR HAVELI | 45          | 35.1             | 42          | 24.93            | 46          | 27.4             |
| 7         | DAMAN&DIU          | 14          | 3.83             | 15          | 8.79             | 10          | 3.81             |
| 8         | DELHI              | 104         | 33.1             | 97          | 27.23            | 81          | 18.46            |
| 9         | GOA                | 2           | 0.66             | 3           | 6.27             | 3           | 0.81             |
| 10        | GUJARAT            | 1127        | 281.92           | 1139        | 337.75           | 1156        | 358.64           |
| 11        | HARYANA            | 155         | 38.56            | 154         | 25.57            | 163         | 35.59            |
| 12        | HIMACHAL PRADESH   | 39          | 14.65            | 37          | 12.64            | 34          | 11.77            |
| 13        | JAMMU &KASHMIR     | 11          | 3.09             | 9           | 1.87             | 9           | 2.18             |
| 14        | JHARKHAND          | 2           | 0.84             | 2           | 0.13             | 2           | 0.36             |
| 15        | KARNATAKA          | 90          | 33.84            | 70          | 28.39            | 54          | 25.07            |
| 16        | KERALA             | 40          | 9.33             | 32          | 2.8              | 27          | 9.96             |
| 17        | MADHYAPRADESH      | 105         | 104.57           | 92          | 68.86            | 85          | 76.08            |
| 18        | MAHARASHTRA        | 784         | 347.35           | 646         | 218.58           | 576         | 302.7            |
| 19        | ORISSA             | 1           | 0.12             | 2           | 0.24             | 2           | 0.13             |
| 20        | MIZORAM            | 1           | 0.01             | 0           | 0                | 0           | 0                |
| 21        | PONDICHERY         | 3           | 0.48             | 2           | 0.03             | 2           | 0.17             |
| 22        | PUNJAB             | 658         | 277.85           | 702         | 152.78           | 644         | 268.76           |
| 23        | RAJASTHAN          | 344         | 99.05            | 288         | 77.89            | 280         | 123.26           |
| 24        | TAMIL NADU         | 1411        | 218.13           | 1143        | 111.79           | 1021        | 197.73           |
| 25        | TELANGANA          | 90          | 21.95            | 75          | 23.01            | 74          | 16.58            |
| 26        | UTTAR PRADESH      | 122         | 25.19            | 100         | 16.67            | 88          | 14.48            |
| 27        | UTTARANCHAL        | 13          | 4.21             | 12          | 3.13             | 6           | 2.79             |
| 28        | WEST BENGAL        | 96          | 20.37            | 98          | 25.75            | 86          | 19.89            |
| Total     | Total              | 5542        | 1673.45          | 4993        | 1227.86          | 4641        | 1576.39          |

Annexure II(ii) Subsidy released State wise under Powerloom in the last two years and the current year

| Name of the Cluster   | 2014 - 15             | 2014 - 15        | 2015 - 16             | 2015 - 16        | 2016 - 17**           | 2016 - 17**      |
|-----------------------|-----------------------|------------------|-----------------------|------------------|-----------------------|------------------|
| Name of the Cluster   | No. of Looms upgraded | Subsidy released | No. of Looms upgraded | Subsidy released | No. of Looms upgraded | Subsidy involved |
| Ahmedabad             | 0                     | 0                | 12                    | 0.84             | 0                     | 0                |
| Dholka                | 0                     | 0                | 0                     | 0                | 0                     | 0                |
| Surat                 | 472                   | 39.92            | 304                   | 30.54            | 315                   | 29.72            |
| Gujarat               | 472                   | 39.92            | 316                   | 31.38            | 315                   | 29.72            |
| Ludhiana              | 24                    | 2.88             | 16                    | 1.92             | 0                     | 0                |
| Punjab                | 24                    | 2.88             | 16                    | 1.92             | 0                     | 0                |
| Nagari                | 165                   | 14.63            | 463                   | 31.83            | 427                   | 29.89            |
| Hindupur              | 396                   | 59.40            | 1076                  | 161.4            | 291                   | 43.65            |
| Palmaner              | 0                     | 0                | 0                     | 0                | 0                     | 0                |
| Andhra Pradesh        | 561                   | 74.03            | 1539                  | 193.23           | 718                   | 73.54            |
| Sircilla              | 0                     | 0                | 4412                  | 630.51           | 939                   | 138.79           |
| Nalgonda              | 0                     | 0                | 0                     | 0                | 0                     | 0                |
| Telangana             | 0                     | 0                | 4412                  | 630.51           | 939                   | 138.79           |
| Erode                 | 964                   | 144.60           | 13412                 | 1987.51          | 7198                  | 1065.06          |
| Salem                 | 70                    | 10.50            | 2432                  | 362.4            | 1220                  | 183.00           |
| Somanur               | 4646                  | 576.98           | 12964                 | 1702.55          | 12397                 | 1484.01          |
| Karur                 | 0                     | 0                | 0                     | 0                | 3                     | 1.05             |
| Rajapalaym            | 0                     | 0                | 0                     | 0                | 0                     | 0                |
| Arupukottai           | 0                     | 0                | 0                     | 0                | 0                     | 0                |
| Sholingur             | 0                     | 0                | 0                     | 0                | 0                     | 0                |
| Tamil Nadu            | 5680                  | 732.08           | 28808                 | 4052.46          | 20818                 | 2733.12          |
| Burhanpur             | 12                    | 1.50             | 56                    | 5.4              | 20                    | 2.4              |
| Madhya Pradesh        | 12                    | 1.50             | 56                    | 5.4              | 20                    | 2.4              |
| Bhagalpur             | 0                     | 0                | 3                     | 0.21             | 30                    | 3.06             |
| Gaya                  | 0                     | 0                | 0                     | 0                | 0                     | 0                |

| Name of the Cluster   | 2014 - 15             | 2014 - 15        | 2015 - 16             | 2015 - 16        | 2016 - 17**           | 2016 - 17**      |
|-----------------------|-----------------------|------------------|-----------------------|------------------|-----------------------|------------------|
| Name of the Cluster   | No. of Looms upgraded | Subsidy released | No. of Looms upgraded | Subsidy released | No. of Looms upgraded | Subsidy involved |
| Bihar                 | 0                     | 0                | 3                     | 0.21             | 30                    | 3.06             |
| Bhiwandi              | 1508                  | 118.65           | 9636                  | 923.58           | 11021                 | 1353.44          |
| Ichalkaranji          | 240                   | 26.36            | 0                     | 0                | 116                   | 17.40            |
| Malegaon              | 0                     | 0                | 106                   | 15.9             | 0                     | 0                |
| Nagpur                | 0                     | 0                | 0                     | 0                | 0                     | 0                |
| Solapur               | 0                     | 0                | 8                     | 1.12             | 0                     | 0                |
| Vita                  | 0                     | 0                | 0                     | 0                | 0                     | 0                |
| Maharashtra           | 1748                  | 145.01           | 9750                  | 964.19           | 11137                 | 1370.84          |
| Kishangargh           | 0                     | 0                | 0                     | 0                | 0                     | 0                |
| Rajasthan             | 0                     | 0                | 0                     | 0                | 0                     | 0                |
| Mau                   | 0                     | 0                | 0                     | 0                | 0                     | 0                |
| Tanda                 | 0                     | 0                | 88                    | 9.39             | 154                   | 16.37            |
| Varanasi              | 34                    | 2.55             | 317                   | 29.81            | 294                   | 31.67            |
| Uttar Pradesh         | 34                    | 2.55             | 405                   | 39.20            | 448                   | 48.04            |
| Bangalore             | 0                     | 0                | 0                     | 0                | 494                   | 74.10            |
| Belgavi               | 0                     | 0                | 0                     | 0                | 307                   | 46.05            |
| Tiptur                | 0                     | 0                | 0                     | 0                | 0                     | 0                |
| Banahatti             | 0                     | 0                | 0                     | 0                | 0                     | 0                |
| Karnataka             | 0                     | 0                | 0                     | 0                | 801                   | 120.15           |
| Ranaghat              | 0                     | 0                | 0                     | 0                | 2                     | 0.20             |
| Nabwadip              | 0                     | 0                | 0                     | 0                | 0                     | 0                |
| West Bengal           | 0                     | 0                | 0                     | 0                | 2                     | 0.20             |
| Grand Total           | 8531                  | 997.97           | 45305                 | 5918.41          | 35228                 | 4519.86          |

## Year  wise Fund  Allocation vis-à-vis Expenditure under Technology Mission on Technical Textiles (TMTT)

| Financial year   | Fund allocation made to Centres of excellence (Rs. in crore)   |   Expenditure (Rs. in crore) |
|------------------|----------------------------------------------------------------|------------------------------|
| 2014-15          | 32.00                                                          |                        30.71 |
| 2015-16          | 23.00                                                          |                        22.32 |
| 2016-17          | 30.30 (82.5 Lakhs*)                                            |                         0.53 |

*Authorization to Textile Commissioner has been provided for Rs.82.5 Lakhs

## Year wise Fund Allocation vis-à-vis Expenditure under Scheme for promoting usage of Agrotextiles in North-Eastern Region:

| Financial year   |   Fund allocation (Rs. in crore) | Expenditure (Rs. in crore)   |
|------------------|----------------------------------|------------------------------|
| 2014-15          |                             9    | 9.00                         |
| 2015-16          |                            10    | 10.00                        |
| 2016-17          |                            14.99 | --                           |

## Year wise Fund Allocation vis-à-vis Expenditure under Scheme for promoting usage of Geotechnical textiles in North-Eastern Region:

| Financial year   | Fund allocation   |   Expenditure (Rs. in crore) |
|------------------|-------------------|------------------------------|
| 2014-15          | 4.00              |                         4    |
| 2015-16          | 15.00             |                         3.63 |
| 2016-17          | 19.99(4.0*)       |                         2.11 |

*Authorization to Textile Commissioner has been provided for Rs.4.0 crore

## THE COMPLAINTS OF IRREGULARITIES/MALPRACTICES IN THE IMPLEMENTATION  OF  SCHEMES/PROGRAMMES  DURING  THE  PERIOD OF THE SCHEMES

## i. Complaint against M/s. Rajvir Industries Ltd. :

-  Central Vigilance Commission (CVC) referred the complaint against M/s. Rajvir Industries Ltd. to the Ministry of Textiles for enquiry in May 2010. The  Complaint  said  that  the  company  defrauded  the  Government  of Rs. 30 crores by wrongfully receiving interest reimbursement subsidy under TUFS.  Based  on  Textiles  Commissioner's  Inquiry  Report,  Ministry  had recommended  to  Chief  Vigilance  Officer  stringent  and  credible  punitive action  in  the  matter.  Vigilance  Division  was  asked  to  take  a  view  on referring the matter to CBI for further enquiry.
-  CVC vide letter on 21.09.2011 advised Ministry of Textiles to handover the case to Central Bureau of Investigation (CBI) for a detailed investigation. Ministry of Textiles on 30.11.2011 requested CBI to file FIR in the case of M/s. Rajvir Industries Ltd. and others who have defrauded the Government.
-  State Bank of Hyderabad reported recovery of Rs. 4.96 crores (Rs. 3.57 crores of TUFS subsidy and Rs. 1.38 crores of interest) and Axis Bank has reported recovery of Rs. 4.10 crores (Rs. 3.28 crores of subsidy and rest interest @ 10%). The recovered amount of Rs. 9.06 crores has been remitted to Government
-  The  CBI  court,  in  its  Order  dated  3rd  January,  2014  has  stated  that  the Hon'ble Court has accepted the final report of the Investigating Officer and the case is closed. CBI court, mentioned that there is no sufficient evidence available  on  record  to  prove  charge  of  criminal  conspiracy,  cheating  and criminal  misconduct  on  the  part  of  public  servants  and  other  beyond  all reasonable doubts in the court of law.
-  However, WP No. 298/2012 filed by M/s Rajvir Industries Ltd  Vs Union of India& Others before the Hon'ble High Court of Andhra Pradesh in which MoT  was  respondent  No  1.  with  the  prayer  to  return  the  eligible  TUFS subsidy.  The Hon'ble High Court vide Order dt. 21.7.2015 has stated that the Writ Petition is dismissed as withdrawn.

## ii. Complaint against  Tayal Group of Companies :

-  Central  Economic  Intelligence  Bureau  (CEIB),  New  Delhi  has  informed about    the  misuse  of  TUFS  by  the  Tayal  Group  of  companies  (  Krishna Knitwear  Technologies  Ltd.,  Eskay  K'nit  India  Ltd.,  Ksl  and  Industries Ltd., Jaybharat Textiles and Real Estate Ltd., Krishna Lifestyle Technologies  Ltd.,  Asif  Corporation  Ltd.,  Tayal  Energy  Ltd.,  Global Softech Ltd.). CEIB, interalia informed that the Group Company appears to have received huge subsidy under TUFS on the basis of forged documents / false claims.
-  Information from 17 (seventeen) concerned lending agencies vide letters of dt.  28.7.2014  and  also  DO  letters  dt.  22.7.2015    was  sent    to  EDs  of 12(twelve) lending agencies. Also, RO Navi Mumbai and RO Ahmadabad vide  e-mails  dt.  17.7.2015  and  22.7.2015  were  instructed  to  conduct physical verification of the assets of these units.
-  The  lending  agencies  have  not  submitted  proper  information  yet.  The reports received from ROs have also mentioned that  the management has not produced the documents mentioned in the letter, in the absence of which the  teams  could  not  ascertain  if  the  machinery  is  as  per  TUFS.  However, they have conducted the physical verification of the machinery installed in the  units.  The  reports  are  under  examination  and  further  information  are being sought from lending agencies.

## iii. Complaint  for  misuse  of  TUF  Scheme  by  25  textile  units  in Rajasthan :

-  MOT received Preliminary Enquiry Report (PER) in PE JDH 2012 A 0001 / CBI  Jodhpur,  through  Vigilance  Section  in  connection  with  misuse  of TUFS by following 25 textile units in Rajasthan.
-  Vide OM dt. 7/12.6.2013 the  concerned lending agencies were instructed the following:
- i. Regarding units which are prima facie found guilty of irregularities by CBI  the  concerned  lending  agencies  to  recover  the  subsidy  released along with penal interest @ 10% p.a.  and remit the same to Pay and Accounts Officer, Ministry of Textiles, New Delhi, under intimation to this office immediately.
- ii. Regarding  the  remaining  fifteen  units  i.e.  suspected  units  which  are under enquiry by CB the concerned lending agencies advised to ensure that  sufficient  collateral  security  to  cover  the  subsidy  released  so  far and penal interest may be maintained for possible recovery.
- iii. In  all  the  25    cases  the  lending  agencies  instructed  that  no  further subsidy claims in respect of these units should be forwarded for release of subsidy.
-  Office of the Superintendent of Police, CBI, Jodhpur vide letter dt. 5.1.2014 has informed that this may kindly be considered for withdrawal. CBI further informed that no FIR has been registered by them in the matter and as such the question of investigation does not arise.
-  However, the regional office was informed to conduct physical verification  of  the  units  and  based  on  the  reports  received  subsides  are being recovered along with penal interest.

| Sr. No.   | Name of the unit              |   Sr. No. | Name of the unit                  |
|-----------|-------------------------------|-----------|-----------------------------------|
| 1         | Navin Synthetic               |        13 | Sunglow Suitings Pvt. Ltd.        |
| 2         | Giriraj Spintex Pvt. Ltd.     |        14 | Sunrise Synthetic Pvt. Ltd.       |
| 3         | Manjushree Syntex             |        15 | Melange Suitings,                 |
| 4         | Shiv Mahal Textile Pvt. Ltd.  |        16 | Deva (India) Tax Fab,             |
| 5         | Suraj Universal Ltd.          |        17 | Sanskar Synthetics Pvt.           |
| 6         | Shree Giraj Suitings Pvt. Ltd |        18 | Ltd., Shivram Synthetic,          |
| 7         | Swaraj Sulz Pvt. Ltd.         |        19 | Topman Fashion,                   |
| 8         | Kanchan India Ltd.            |        20 | Suvidhi Rayons Pvt. Ltd.          |
| 9         | Sadhna Sulz Pvt. Ltd.         |        21 | Sharad Syntex Pvt. Ltd.,          |
| 10        | Sudhir Synthetics Pvt. Ltd.   |        22 | Saileela Synthetics Pvt.          |
| 11        | D.S. Suitings Pvt. Ltd.       |        23 | Ltd., Jaishiv Syncotex Pvt. Ltd., |
| 12        | Reyman Textile Pvt. Ltd.      |        24 | Gentleman Suitings Pvt.           |
|           |                               |        25 | Ltd., Kanhaiya Texfab Pvt. Ltd.,  |

******