Lok Sabha Question No. 167 (STARRED), answered on 2016-05-05
Subject: Technology Upgradation Fund Scheme
Ministry: TEXTILES
Asked by: A.T. (NANA) PATIL

## LOK SABHA STARRED QUESTION NO.*167 TO BE ANSWERED ON 05.05.2016

## TECHNOLOGY UPGRADATION FUND SCHEME

*167. SHRI A.T. NANA PATIL:

Will the Minister of TEXTILES वस्त्र मंरी

be pleased to state:

- (a) whether the textile sector is keen to assimilate the new technologies, if so, the status of induction of new technologies in the sector;
- (b) whether  the  Government  has  revised  the  Technology  Upgradation Fund Scheme, if so, the new features thereof ; and
- (c) the  steps  taken/being  taken  by  the  Government  to  provide  capital subsidy to new and existing textile units to enable them to bring in modern machinery and increase their output?

## उत्तर

## ANSWER

वस्त्र राज् य मंरी (स्त्वतंर प्रभार) (श्री संतोष क ु मार गंगवार) MINISTER OF STATE (INDEPENDENT CHARGE)

IN THE MINISTRY OF TEXTILES (SHRI SANTOSH KUMAR GANGWAR)

- (a) to (c): A statement is laid on the Table of the House.

## STATEMENT REFERRED TO IN REPLY TO THE LOK SABHA STARRED QUESTION NO. *167 FOR 05.05.2016 REGARDING TECHNOLOGY UPGRADATION FUND SCHEME ASKED BY SHRI A.T. NANA PATIL, M.P.

(a): Yes,  Madam.  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.  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.  The  major  machinery installed under TUFS is listed at Annexure-1.

(b): 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. The salient features of the scheme are given below:-

- (i) The scheme is for a period of seven years from 13.01.2016 to 2021-22.
- (ii) The  scheme  will  be  bank  credit  linked  with  emphasis  on  promotion  of  exports,  import substitution and generation of employment.
- (iii) It provides for one time capital subsidy for eligible machinery.
- (iv) 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.
- (v) The rates of subsidy and caps for different segments under ATUFS is given below:-

| Sl. No.   | Segment                                                                                                                                                                        | Rate of Investment (CIS)   | Capital Subsidy   | CIS per individual entity   |
|-----------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------|-------------------|-----------------------------|
| 1.        | Garmenting, Technical Textiles                                                                                                                                                 | 15% on Machines            | eligible          | Rs. 30 crore*               |
| 2.        | Weaving for brand new Shuttle-less Looms (including weaving preparatory and knitting), Processing, Jute, Silk and Handloom.                                                    | 10% on Machines            | eligible          | 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 Machines            | eligible          | 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 Machines            | eligible          | 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.

(c): Guidelines of ATUFS have been issued on 29.02.2016 which lays down the financial & operational  parameters  and  implementation  mechanism.    A  web  based  claims  monitoring  and tracking mechanism, 'i-ATUFS' has been made operational with effect from 21 st April, 2016 for online implementation and monitoring of A-TUFS which provides a transparent MIS platform to all the stakeholders, the beneficiaries, banks, Office of Textile Commissioner and the Ministry of Textiles  for  smooth  implementation  of  the  scheme.      Based  on  the  claims  received  from  the Banks,  subsidy  is  released  to  the  beneficiaries  subject  to  availability  of  funds.  A  total  of  735 applications have been uploaded online on iATUFS since 13.01.2016.

## LIST OF MAJOR MACHINERY INSTALLED UNDER TUFS

## Segment: Spinning

Machine Company name (Make)

## Name of Machine Name of Company

Blowroom                                       LMW, Rieter Carding                                          LMW, Rieter Draw-frame                                    LMW Comber & Lap former                    LMW Roving frame                                 LMW, Zinser, Tekmatex Ring frame                                     LMW, Kirloskar Toyota Auto corner                                    Schlafhorst TFO                                               Volkman, Itema

## Segment:  Weaving

Sectional warping                          Benninger Direct/soft warper                          Benninger Sizing                                             Benninger Looms                                            Sulzer, Picanol, Dornier Drawing-in machine                       Staubli

## Segment:  Processing

Machine Company name (Make)

Mercerising                                    Benninger Continuous pretreatment range     Benninger Pad dry machine                            Benninger Pad steam machine                       Benninger Desize /print / washing                  Benninger Rotary printing machine                Stormeek Stenter                                           Monforsts ,Moten Sanforizing machine                      Monforsts, Dhal Calendering                                   Kuster Singeing                                        Osthoff Senge

## Value addition machineries installed under Processing

Machine

Foam finishing machine Pleating machine Pinching machine Peach finish machine Rotary printing machine Sanforizing machine Embossing machine Singeing machine

## Major machineries installed under RMG

Machine Company name (Make)

| Single needle lockstitch         | Juki   |
|----------------------------------|--------|
| Double needle lockstitch         | Juki   |
| Computer button holdings         |        |
| Lockstitch button stitch         |        |
| Automatic pocket welting machine |        |
| Auto eyelet button hole machine  | Juki   |
| Garment washer                   | Juki   |

## Segment: Ginning

Machine Company name (Make)

Ginning machine with complete line National Engineering Works Pre-cleaner Shree Lakshmi Textile Machine works Lint cleaner Shree Lakshmi Textile Machine works Bale pressing Shree Ganesh Engineering and Fabricators.

## Segment: Jute

Machine Company name (Make)

Softening and Carding machine Hans Machineries Pvt Ltd. Spinning machine Himsons Textile Machine Manufacture

## Segment: Knitting

Machine Company name (Make)

Circular knitting machine Mayer & Cie Warp knitting machine Karl Mayer Socks and gloves knitting Mayer & Cie

## Segment: Texturising

Machine Company name (Make)

Texturising machine Himsons Textile Machine Manufacture and Oerlikon Barmag Micro slitting machine Oerlikon Barmag Precision assembly winder SSM (Schärer Schweiter Mettler AG)

## Segment:  Silk Reeling

Machine Company name (Make)

Multiend silk reeling machine Gajalakshmi Industries Silk TFO Gajalakshmi Industries and Vijay Lakshmi Engg Works Ltd.

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