Lok Sabha Question No. 915 (UNSTARRED), answered on 2016-04-28
Subject: Amended Technology Upgradation Fund Scheme
Ministry: TEXTILES
Asked by: SRINIVAS KESINENI, MAHEISH GIRRI, YERRAM VENKATA SUBBAREDDY

## LOK SABHA UNSTARRED QUESTION NO. 915

## TO BE ANSWERED ON 28.04.2016

## AMENDED TECHNOLOGY UPGRADATION FUND SCHEME

## 915. SHRI KESINENI NANI:

SHRI MAHEISH GIRRI:

SHRI Y.V. SUBBA REDDY:

Will the Minister of TEXTILES वस्त्र मंरी

be pleased to state:

- (a) whether amendments have been envisaged under Amended Technology Upgradation Fund Scheme  (A-TUFS)  to  upgrade  the  textiles  industry  in  the  country  especially  to  focus  on encouraging apparel and garment industry;
- (b) if so, the details thereof and the extent to which the A-TUFS is likely to boost production and export in textiles;
- (c) the steps taken by the Government under the A-TUFS for upgrading textile technology in the country;
- (d) the details of funds allocated/released and utilized under A-TUFS or pre-revised scheme during each of the last three years State/UT-wise; and
- (e) the kind of technology upgradation support provided to the textile industry in the State of Andhra Pradesh under the Scheme ?

## उत्तर

## ANSWER

वस्त्र राज  ् य मंरी ( स्त्वतंर प्रभार ) ( श्री संतोष कु मार गंगवार )

MINISTER OF STATE (INDEPENDENT CHARGE)

IN THE MINISTRY OF TEXTILES

(SHRI SANTOSH KUMAR GANGWAR)

(a) to (c): The  Government  has  approved  the  introduction of  ' 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  with  one  time  capital  subsidy  for  eligible  machinery  for  a  period  of  seven  years  from 2015-16 to  2021-22. The scheme has become effective w.e.f. 13.01.2016. The details thereof are given below:-

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

ATUFS  aims  to  support  new  investments  with  capital  subsidy  to  focus  segments  as indicated above thereby generating employment and promoting exports through 'Make in India'. It will also indirectly promote investment in textile machinery (having benchmarked technology) manufacturing.  It  is  expected  that  ATUFS  will  attract  an  investment  of  Rs.1,00,000  crore  and generate employment of 30.51 lakhs.

(d) & (e): An allocation of Rs. 17,822 crore has been approved for seven years from 2015-16 to 2021-22 to meet the committed liabilities of Rs.12, 671 crore and Rs.5151 crore for new cases under ATUFS. As on date, no funds have been released under ATUFS.  TUFS is a demand driven scheme and the funds are allocated on all India basis. The details of State/UT-wise funds released, including the State of Andhra Pradesh, under MTUFS, RTUFS and RRTUFS in the last three years are given in Annexure-I.

## STATE-WISE RELEASE OF SUBSIDIES UNDER MTUFS, RTUFS and RRTUFS (amount in crore)

| Name of the Scheme          | MTUFS   | MTUFS   | MTUFS   | RTUFS   | RTUFS   | RTUFS   | RRTUFS   | RRTUFS   |
|-----------------------------|---------|---------|---------|---------|---------|---------|----------|----------|
| State Name                  | 2013-14 | 2014-15 | 2015-16 | 2013-14 | 2014-15 | 2015-16 | 2014-15  | 2015-16  |
| Andhra Pradesh              | 75.41   | 56.25   | 15.19   | 12.32   | 28.44   | 17.79   | 2.90     | 12.63    |
| Assam                       | 0.02    | 0.01    | 0.00    | 0.62    | 0.72    | 0.48    | 1.30     | 0.31     |
| Bihar                       | 0.01    |         |         | 0.02    | 0.02    | 0.02    | 0.06     | 0.02     |
| Chandigarh (UT)             | 7.47    | 15.57   | 0.57    | 1.03    | 1.00    | 0.64    | 0.20     | 8.61     |
| Chhattisgarh                | 0.05    | 0.07    | 0.00    | 2.94    | 0.75    | 0.84    |          |          |
| Dadra and Nagar Haveli (UT) | 1.78    | 1.72    | 0.01    | 19.37   | 25.18   | 21.21   | 4.96     | 3.37     |
| Daman and Diu (UT)          | 2.34    | 1.59    | 0.32    | 1.80    | 1.42    | 0.88    | 0.82     | 7.60     |
| Delhi (UT)                  | 12.22   | 18.24   | 3.49    | 7.70    | 7.96    | 4.69    | 7.54     | 20.00    |
| Goa                         |         |         |         |         |         |         | 0.66     | 6.27     |
| Gujarat                     | 69.90   | 46.47   | 8.02    | 145.80  | 172.27  | 134.40  | 66.78    | 195.37   |
| Haryana                     | 14.11   | 9.81    | 2.19    | 17.91   | 8.12    | 6.40    | 20.44    | 16.35    |
| Himachal Pradesh            | 2.79    | 2.98    | 0.77    | 6.29    | 10.84   | 7.28    | 0.82     | 4.67     |
| Jammu and Kashmir           | 2.74    | 2.69    | 0.59    | 0.44    | 1.55    | 0.83    | 0.00     | 0.74     |
| Jharkhand                   |         |         |         | 0.48    | 0.07    | 0.07    | 0.77     | 0.06     |
| Karnataka                   | 14.88   | 10.81   | 3.25    | 18.60   | 20.21   | 17.05   | 2.82     | 8.08     |
| Kerala                      | 9.17    | 7.28    | 2.12    | 0.26    | 0.69    | 0.47    | 0.34     | 0.21     |
| Madhya Pradesh              | 15.11   | 11.73   | 2.85    | 88.49   | 85.74   | 55.77   | 6.75     | 10.40    |
| Maharashtra                 | 247.78  | 248.86  | 37.26   | 71.36   | 71.08   | 49.60   | 32.07    | 131.00   |
| Orissa                      |         |         |         | 0.00    | 0.12    | 0.07    | 0.00     | 0.17     |
| Pondicherry                 | 0.03    | 0.01    |         | 0.00    | 0.04    | 0.00    | 0.43     | 0.03     |
| Punjab                      | 167.80  | 159.68  | 24.50   | 89.53   | 101.79  | 92.14   | 21.92    | 34.68    |
| Rajasthan                   | 67.52   | 52.19   | 13.39   | 42.81   | 32.71   | 25.93   | 10.58    | 37.56    |
| Tamil Nadu                  | 178.04  | 147.31  | 29.68   | 33.58   | 33.75   | 27.30   | 43.08    | 54.35    |
| Telangana                   |         |         |         | 7.70    | 8.51    | 7.69    | 2.28     | 11.16    |
| Uttar Pradesh               | 14.74   | 9.65    | 1.52    | 17.54   | 5.47    | 3.42    | 3.95     | 11.05    |
| Uttaranchal                 | 2.08    | 1.40    | 0.34    | 6.92    | 2.81    | 2.79    |          |          |
| West Bengal                 | 5.70    | 3.33    | 1.21    | 15.51   | 8.08    | 6.80    | 8.67     | 17.71    |
| Total                       | 911.70  | 807.64  | 147.28  | 609.04  | 629.35  | 484.60  | 240.14   | 592.41   |

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