Lok Sabha Question No. 1189 (UNSTARRED), answered on 2017-02-09
Subject: Revision in TUFS
Ministry: TEXTILES
Asked by: P. KUMAR

## 1189.   SHRI P. KUMAR:

Will the Minister of TEXTILES वस्त्र मंरी be pleased to state:

(a) whether the Government has revised the provisions of Technology Upgradation Fund Scheme with a view to boost 'Make in India' initiative textile sector;

(b) if so, the details thereof; and

(c) the details of the budget provisions made and the incentives being offered to handloom sector for the said purpose?

## उत्तर

## ANSWER

## वस्त्र मंरी ( )

## MINISTER OF TEXTILES (SMT. SMRITI ZUBIN IRANI)

(a) & (b): Yes, Madam. The Government has approved 'Amended Technology Upgradation Fund Scheme (A-TUFS)' in place of Revised Restructured Technology Upgradation Fund Scheme (RRTUFS) for technology upgradation of the textile industry with one time capital subsidy for eligible benchmarked machinery for a period of seven years from 2015-16  to  2021-22.  Keeping  in  view  the  levels  of  modernization  achieved  in  the  spinning segment,  the  rates  and  ceiling  of  subsidy  for  different  segments  available  under  ATUFS  are indicated below:-

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

* 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.

## LOK SABHA UNSTARRED QUESTION NO.1189 TO BE ANSWERED ON 09.02.2017

## REVISION IN TUFS

Ministry  has  also  notified  the  Scheme  for  Production  and  Employment  Linked  Support  for Garmenting  Units  (SPELSGU)  under  ATUFS  to  incentivise  production  and  employment generation  in  the  garmenting  sector  vide  Resolution  dated  25.07.2016.  The  Government  has also approved reforms inter alia to boost Employment Generation and Exports in the Made-Ups Sector vide Resolution dated 10.01.2017 . The additional incentive of 10% will be provided to both the garmenting and made-ups units which would be availing the 15% Capital Investment Subsidy  (CIS)  under  ATUFS  for  the  installation  of  eligible  benchmarked  machinery  after  a period  of  3  years.  The  cap  on  capital  investment  subsidy  for  the  eligible  machinery  in  the garmenting and made-ups units has therefore been enhanced from Rs. 30 crore which was the cap under ATUFS, to Rs. 50 crore. This additional subsidy of 10% will be on achievement of the  projected  production  and  employment  generation,  as  stated  by  the  unit  in  its  Detailed Project Report (DPR).

(c): An  allocation  of  Rs.  17,822  crore  has  been  approved  for  seven  years  to  meet  the committed  liabilities  of  Rs.  12,671  crore  and  Rs.  5151  crore    for  new  cases  under  ATUFS. Budget  provision  for  the  financial  year  2016-17  under  Revised  Estimate  is  Rs.  2610  crore. However, there is no specific budget provision for any particular segment, including Handloom sector since the scheme is demand driven.

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