Lok Sabha Question No. 813 (UNSTARRED), answered on 2021-07-23
Subject: Technology Upgradation
Ministry: TEXTILES
Asked by: Raghu Ramakrishna Raju Kanumuru

## TECHNOLOGY UPGRADATION

## 813. SHRI KANUMURU RAGHU RAMA KRISHNA RAJU:

## Will the Minister of TEXTILES वस्त्र मंत्री be pleased to state :

(a) whether the Government is planning to bring technology upgradation in the textiles sector to bring it at  par  with  international  standards  and  compete  in  global  markets  so  as  to  reduce  the  imports  in  the textile sector;

(b) if so, the details thereof;

(c) the details Sops and exemptions being provided to exporters to boost exports; and

(d) the other steps being taken to reduce the import of textiles into the country?

## उत्तर

## ANSWER

## वस्त्र राज् यमंत्री ( श्रीमती दर्शना जरदोर् )

## THE MINISTER OF STATE IN THE MINISTRY OF TEXTILES (SMT. DARSHANA JARDOSH)

(a) & (b): 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.  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 is given in Annexure-I.

(c) & (d): 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 01.01.2021 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 14.07.2021, the Government has decided to  continue  Rebate  of  State  and  Central  Taxes and  Levies  (RoSCTL)  Scheme  w.e.f  01.01.2021  till 31.03.2024 for textile exporters of Apparel/Garments (Chapters-61 & 62) and Made-ups (Chapter-63) in exclusion from RoDTEP scheme for these chapters.

## Annexure-I

Information pertaining to part (a) & (b) of Lok Sabha Unstarred Question No. 813 - Segment wise rate of Capital Investment Subsidy (CIS) under ATUFS

| S. No.   | Segment                                                                                                                                                                        | Rate of 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 |