Lok Sabha Question No. 2048 (UNSTARRED), answered on 2019-11-29
Subject: Technology Upgradation Fund Scheme
Ministry: TEXTILES
Asked by: Hemant Tukaram Godse

## LOK SABHA UNSTARRED QUESTION NO.2048 TO BE ANSWERED ON 29.11.2019

## TECHNOLOGY UPGRADATION FUND SCHEME

2048. SHRI HEMANT TUKARAM GODSE:

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

(a) the salient features of the restructured Technology Upgradation Fund Scheme (TUFS) implemented by the Government;

(b) the  funds  allocated,  released  and  utilised  under  the  scheme  during  each  of  the  last three years and the current year, State-wise including Maharashtra;

(c) whether the Government has formulated any action plan for providing employment opportunities to the youth by linking the said scheme with 'Make in India' programme; and

(d) if so, the details thereof?

## उत्तर

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

MINISTER OF TEXTILES (SMT. SMRITI ZUBIN IRANI)

(a): The salient features of Restructured Technology Upgradation Fund Scheme (RTUFS) are detailed in Annexure-I.

(b): RTUFS was approved with an overall outlay of Rs. 1972 crore. The subsidy under the scheme is disbursed based on the claims submitted by the banks/lending agencies. Details of year-wise and state-wise subsidy released under RTUFS during the last three years and the current year are given at Annexure -II.

(c)  &  (d): Technology  Upgradation  Fund  Scheme  (TUFS)  was  revamped  as  Amended Technology Upgradation Fund Scheme (ATUFS) in line with 'Make in  India' initiate  for implementation  during  2016-2022,  with  a  projected  employment  for  35  lakh  persons. Considering  the  scope  of  generating  maximum  employment  per  unit  investment,  higher incentives  (15%  Capital  Investment  Subsidy)  have  been  provided  to  garmenting  segment under  ATUFS.  Scheme  for  Production  and  Employment  Linked  Support  for  Garmenting Units (SPELSGU) was also notified under ATUFS to incentivise production and employment generation in the garmenting and made-ups sectors by providing additional incentive of 10% on achievement of employment projected by the units.

## Salient Features of the Restructured Technology Upgradation Fund Scheme (RTUFS)

1. RTUFS was approved with an overall subsidy cap of Rs. 1972 crore, with sectoral investment cap  of  26%  for  spinning,  13%  for  weaving,  21%  for  processing,  8%  for  garmenting  and  31%  for 'others',
2. Segments covered and rate of subsidy under RTUFS is given below:
3. Additional option to the powerloom units and independent preparatory units to avail of 20% Margin Money subsidy under Restructured TUFS in lieu of 5% interest reimbursement on investment in  TUF compatible specified machinery subject to a capital ceiling of Rs. 500 lakh and ceiling on margin money subsidy of Rs.60 lakh. However, for brand new shuttleless looms the ceiling on margin money subsidy was Rs.1 crore. A minimum of 15% equity contribution from beneficiaries.
4. The Scheme covers only automatic shuttleless looms of 10 years' vintage and with a residual life of minimum 10 years.
5. Interest reimbursement for a period of 7 years including 2 years implementation / moratorium period.

|   # | Segment                                                                                 | Interest Reimbursement (IR)   | Capital Subsidy   | MMS*in Lieu of IR for SSI units   |
|-----|-----------------------------------------------------------------------------------------|-------------------------------|-------------------|-----------------------------------|
|   1 | Spinning                                                                                | 4%                            | Nil               | Nil                               |
|   2 | Weaving Preparatory                                                                     | 5%                            | 10%               | 20%                               |
|   3 | Weaving - New Machine                                                                   | 5%                            | 10%               | 20%                               |
|   4 | Weaving -Second Hand                                                                    | 5%                            | 10%               | 20%                               |
|   5 | Processing                                                                              | 5%                            | 10%               | 15%                               |
|   6 | Garmenting and Made-ups Manufacturing                                                   | 5%                            | 10%               | 15%                               |
|   7 | Technical Textiles and non-wovens/ Converters                                           | 5%                            | 10%               | 15%                               |
|   8 | Composite Upgradation / Multi Activities                                                | 5%                            | 10%               | 15%                               |
|   9 | Others ( Ginning &Pressing, Twisting& Texturising, Embroidery, Knitting, VSF, Jute etc) | 5%                            | Nil               | 15%                               |
|  10 | Others ( Handloom and Silk)                                                             | 5% IR or 25%CS                | 5% IR or 25%CS    | 5% IR or 25%CS                    |

## State-wise and Year-wise subsidy released under RTUFS

| Name of State/UT    | Year    | Year    | Year    | Total   |
|---------------------|---------|---------|---------|---------|
| Name of State/UT    | 2016-17 | 2017-18 | 2018-19 | Total   |
| Andhra Pradesh      | 21.99   | 18.62   | 6.40    | 47.01   |
| Assam               | 0.64    | 0.63    | 0.10    | 1.37    |
| Bihar               | 0.02    | 0.02    | -       | 0.04    |
| Chandigarh          | 0.34    | 0.28    | 0.05    | 0.67    |
| Chattisgarh         | 0.86    | 0.40    | -       | 1.26    |
| Dadra &Nagar Haveli | 21.08   | 12.35   | 4.61    | 38.04   |
| Daman &Diu          | 0.80    | 0.02    | -       | 0.82    |
| Delhi               | 3.24    | 2.73    | 1.31    | 7.28    |
| Gujarat             | 125.96  | 111.78  | 25.69   | 263.43  |
| Haryana             | 7.62    | 2.10    | 0.59    | 10.31   |
| Himachal Pradesh    | 8.63    | 5.94    | 2.31    | 16.88   |
| Jammu &Kashmir      | 1.18    | 0.75    | 0.45    | 2.38    |
| Jharkhand           | 0.04    | -       | -       | 0.04    |
| Karnataka           | 18.61   | 19.27   | 3.01    | 40.89   |
| Kerala              | 0.65    | 0.33    | 0.04    | 1.02    |
| Madhya Pradesh      | 59.71   | 47.68   | 10.72   | 118.11  |
| Maharashtra         | 64.69   | 40.71   | 11.21   | 116.61  |
| Orissa              | 0.03    | -       | -       | 0.03    |
| Pondichery          | 0.03    | -       | -       | 0.03    |
| Punjab              | 93.25   | 70.46   | 22.33   | 186.04  |
| Rajasthan           | 32.99   | 19.58   | 3.96    | 56.53   |
| Tamil Nadu          | 25.73   | 16.84   | 4.53    | 47.10   |
| Telangana           | 5.83    | 1.79    | 0.36    | 7.98    |
| Uttar Pradesh       | 2.54    | 2.75    | 0.35    | 5.64    |
| Uttaranchal         | 2.60    | 1.78    | 0.04    | 4.42    |
| West Bengal         | 7.01    | 6.47    | 2.40    | 15.88   |
| Total               | 506.07  | 383.28  | 100.46  | 989.81  |

***

## Annexure-II

(In Rs. crore)