Lok Sabha Question No. 1895 (UNSTARRED), answered on 2016-05-05
Subject: Machinery in Textile Sector
Ministry: TEXTILES
Asked by: ASHWINI KUMAR CHOUBEY

## LOK SABHA UNSTARRED QUESTION NO.1895 TO BE ANSWERED ON 05.05.2016

## MACHINERY IN TEXTILE SECTOR

## 1895.   SHRI ASHWINI KUMAR CHOUBEY:

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

- (a) whether most of the Indian textile mills are still working on obsolete machinery and if so, the details thereof, State/UT-wise;
- (b) the steps taken/proposed to be taken to modernise the industry so that it can comply with the international market standards;
- (c) whether power supply in most of the textile factories/mills is inadequate and erratic which adversely affects the production and if so, the details thereof; and
- (d) the steps taken to resolve this problem and the progress made during the last three years and the current year?

## उत्तर

## ANSWER

य मंरी (स्त्वतंर प्रभार) (श्री संतोष क ु मार गंगवार)

वस्त्र राज्

MINISTER OF STATE (INDEPENDENT CHARGE) IN THE MINISTRY OF TEXTILES (SHRI SANTOSH KUMAR GANGWAR)

(a) & (b): A credit linked Technology Upgradation Fund Scheme (TUFS) introduced in 1999 has catalysed capital investments for technology upgradation and modernization of the textiles industry by providing specified interest  reimbursement and capital subsidy. Technology upgradation  under the  scheme means induction of state-of-the-art or near-state-of-the-art technology by the textile industry.   Investment of Rs. 2,71,480 crore has been leveraged and an amount of Rs. 22013.09 crore has been released as subsidy under TUFS for technology upgradation since its inception.

An 'Amended Technology Upgradation Fund Scheme (A-TUFS)' in place  of  the  existing  Revised  Restructured  Technology  Upgradation  Fund Scheme (RRTUFS) for technology  upgradation  of  the  textiles  industry  has been introduced which has become effective from 13.01.2016 for a period of seven  years  till  2021-22.    The  scheme  will  be  bank  credit  linked  with emphasis  on  promotion  of  exports,  import  substitution  and  generation  of employment.  It provides for one time capital subsidy for eligible machinery.

The rates of subsidy and caps for different segments under ATUFS are given below:-

| Sl. No.   | Segment                                                                                                                                                                        | Rate of Capital Investment             | CIS per individual   |
|-----------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------|----------------------|
| 1.        | Garmenting, Technical Textiles                                                                                                                                                 | Subsidy (CIS) 15% on eligible Machines | entity 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)      | 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 eligible Machines               | 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 eligible Machines               | 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.

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.

(c) & (d): The matter regarding supply of power to the textile mills across the country pertains to the State Governments.