Lok Sabha Question No. 1881 (UNSTARRED), answered on 2019-11-29
Subject: Modernized Existing Schemes
Ministry: TEXTILES
Asked by: H. Vasanthakumar

## MODERNIZED EXISTING SCHEMES

## 1881. SHRI VASANTHAKUMAR H.:

## Will the Minister of TEXTILES वस्त्र मंरी

be pleased to state:

- (a) whether the Ministry is considering to modernize existing schemes for the development of textile industry in skill/powerloom/silk sector;
- (b) if so, the details thereof and the steps taken by the Government thereon so far; and
- (c) the steps taken by the Government for technology upgradation fund schemes across the country so as to benefit the industry?

## उत्तर

## ANSWER

## वस्त्र मंरी ( श्रीमती स्मृ तत ज़ू बिन इरानी )

MINISTER OF TEXTILES

(SMT. SMRITI ZUBIN IRANI)

- (a)  &  (b): Yes,  Sir.  In  order  to  achieve  sustainable  growth,  modernization  and  development  of Textile Industry in skill/powerloom/silk sector in the country, Government is implementing several policy  initiatives  that  strengthen  these  schemes  and  also  widen  the  scope  of  these  schemes.  The following are some initiatives of the Government to modernize the existing schemes:
- i. Skill sector :  with a view to address the skilled manpower requirements of textile sector, the Ministry had been implementing Integrated Skill Development Scheme (ISDS) from 2010-11 to  2017-18.  The  scheme  was  implemented  on  pan  India.  Under  the  scheme,  11.14  lakh persons were trained out of which 8.43 lakh persons were given employment.

In  order to  continue the endeavor of the Ministry in addressing the skill gap in the textile  industry,  the  Government  has  approved  a  new  scheme  titled  'Scheme  for  Capacity Building in Textile Sector (SCBTS)' for the entire value chain of textile sector, excluding Spinning and Weaving in the organized sector, for a period of three years from 2017-18 to 2019-20 with an outlay of Rs. 1300 crore. The objectives of the scheme inter alia include providing  demand  driven,  placement  oriented  National  Skills  Qualifications  Framework (NSQF)  compliant  skilling  programmes  to  incentivize  and  supplement  the  efforts  of  the industry in creating jobs in the organised textile and related sectors and to provide skilling and skill-upgradation in the traditional sectors. 10.00 lakh persons will be trained under the scheme.

The Government is also implementing National Handloom Development Programme (NHDP) under which training is imparted to the handloom weavers for their skill upgradation on upgraded/modernised looms and accessories for better quality and productivity.   Under the scheme, 53703 weavers have been imparted skill upgradation training from 2015-16 to 2019-20 (upto 30 th September 2019).

- ii. Powerloom  sector: Government  of  India,  is  implementing  PowerTex  India  Scheme,  a comprehensive Scheme for the Development of Powerloom and Knitting & Knitting wear sector  w.e.f.  01.04.2017  to  31.03.2020  &  01.07.2019  to  31.03.2020  respectively  with  an outlay  of  Rs.  487  crores  for  three  years.    This  scheme  has  components  relating  to  loom upgradation; infrastructure creation and concessional access to credit. The scheme has been designed  to      attract  investment  of  Rs.  1000  crores  and  employment  to  10000  persons  in power-loom sector and will also result in higher returns to power-loom units. The total funds earmarked  for  the  purpose  under  the  said  scheme  under  PowerTex  India  scheme  is  Rs. 487.07 Cr.

Now,  the  Government  has  started  stake  holder's  consultation  to  take  feedback  on suitable policy formation. In this connection, 1 st meeting with the prominent Powerloom and Knitting  associations  was  held  on  18/11/2019.  Moreover,  impact/evaluation  study  of  the existing schemes for Powerloom and Knitting industry is also being conducted through an independent agency.

- iii. Silk  sector: Government  of  India  has  been  implementing  a  Central  Sector  Scheme  'Silk Samagra' an Integrated Scheme for Development of Silk Industry (ISDSI) during the years 2017-18  to  2019-20  for  the  overall  development  of  silk  industry  in  the  Country  with  an objective  to  scale  up  production  by  improving  the  quality  and  productivity.  The  scheme comprises four major Components viz. (i) Research & Development, Training, Transfer of Technology  and  I.T.  Initiatives,  (ii)  Seed  Organizations,  (iii)  Coordination  and  Market Development and (iv) Quality Certification Systems (QCS) / Export Brand Promotion and Technology Up-gradation.

The scheme supports beneficiary oriented components for Mulberry, Vanya and Post Cocoon  Sectors.  These  interventions  cover  the  major  areas  viz.  (a)  Development  and expansion  of  host  plant,  (b)  Strengthening  and  creation  of  Silkworm  Seed  Multiplication infrastructure, (c) Development of farm and post-cocoon infrastructure, (d) Up-gradation of reeling  and  processing  technologies  in  Silk,  and  (e)  Capacity  Building  through  Skill development / Enterprise Development Programme.

- (c): Technology Upgradation Fund Scheme (TUFS): A flagship scheme of the Ministry of Textiles,  Technology  Upgradation  Fund  Scheme  (TUFS)  was  introduced  in  1999  to  catalyze investments in all the sub-sectors of textiles and jute industry for technology upgradation of the machinery  by  way  of  5%  interest  reimbursement.  The  scheme  was  initially  approved  from 01.04.1999 to 31.03.2004. Subsequently, the scheme was extended in 2004 and again in 2007 with modifications.

Now, with a view to promote ease of doing business in the country and achieve the vision of generating employment and promoting exports by way of technology upgradation in textile sector through  'Make  in  India''  with  "Zero  effect  and  Zero  defect"  Amended  Technology  Upgradation Fund Scheme (ATUFS) was launched in January 2016 with an outlay of Rs. 17,822 crore upto 2022. The  objective  of  the  scheme  is  to  facilitate  augmenting  of  investment,  productivity,  quality, employment, exports along with import substitution in textile industry and also to indirectly promote investment in textile machinery manufacturing.

Every  eligible  individual  entity  (not  the  unit)  is  entitled  for  reimbursement  of  Capital Investment Subsidy (CIS) under this scheme, as per the following rates:

| Sl. No.   | Segment                                                                                                                                                                        | Rate of Capital Investment Subsidy (CIS)       |
|-----------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------|
| 1.        | Garmenting, Technical Textiles                                                                                                                                                 | 15% subject to an upper limit of Rs. 30 crores |
| 2.        | Weaving for brand new Shuttle-less Looms (including weaving preparatory and knitting), Processing, Jute, Silk and Handloom.                                                    | 10% subject to an upper limit of Rs 20 crores  |
| 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% subject to an upper limit of Rs 30 crores  |
| 3(b)      | 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. | 10% subject to an upper limit of Rs. 20 crores |

In  case  the  entity  had  availed  subsidy  earlier  under  RRTUFS,  it  will  be  eligible  to  the  extent  of balance subsidy for new or existing units within the overall ceiling fixed for an individual entity.

Government has also notified the Scheme for Production and Employment Linked Support for  Garmenting  Units  (SPELSGU)  under  ATUFS  to  incentivize  production  and  employment generation  in  the  garmenting  sector.  The  additional  incentive  of  10%  will  be  provided  to  the garmenting units which would be availing the 15% Capital Investment Subsidy (CIS) under ATUFS for  the  installation  of  benchmarked  eligible  machinery  after  a  period  of  three  years.  The  cap  on capital  investment  subsidy  for  the  eligible  machines  in  the  garmenting  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 the Detailed Project Report (DPR). An additional subsidy of 10% will also be provided to the made-ups units enhancing the cap to Rs. 50 crore on the lines of SPELSGU under ATUFS based on achievement of the projected production and employment.

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