Lok Sabha Question No. 1804 (UNSTARRED), answered on 2015-07-30
Subject: Funds under TUFS
Ministry: TEXTILES
Asked by: JUGAL KISHORE SHARMA

LOK SABHA

UNSTARRED QUESTION NO.1804

TO BE ANSWERED ON 30.07.2015

**FUNDS UNDER TUFS**

1804.	SHRI JUGAL KISHORE:

Will the Minister of TEXTILES वस्त्र मंत्री

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 Jammu & Kashmir;

(c) 	whether the Government has prepared any action plan for providing employment opportunities to the youth by connecting the said scheme with ‘Make in India’ programme; and

(d) 	if so, the details thereof?

ANSWER

वस्त्र राज्‍य मंत्री (स्वतंत्र प्रभार) (श्री संतोष कुमार गंगवार)

MINISTER OF STATE (INDEPENDENT CHARGE)

IN THE MINISTRY OF TEXTILES

(SHRI SANTOSH KUMAR GANGWAR)

**(a):** The salient features of the restructured Technology Upgradation Fund Scheme (TUFS) are given in **Annexure-** I.

**(b):** The TUF scheme is in operation on a pan-India basis and no allocation of funds under the scheme is made state-wise. The details of funds allocated, released and utilized under the scheme during each of the last three years and the current year are given in **Annexure-II** . Further, subsidy released to units located in various States including Jammu & Kashmir during each of the last three years and the current year under restructured TUFS are given in **Annexure -III.**

**(c):** No, Madam.

**(d):** Does not arise.

**Annexure – I**

**Restructured TUF Scheme (RTUFS) : Salient features**

The Restructured Technology Upgradation Fund Scheme (RTUFS) was launched w.e.f. 28/04/2011 to 31/03/2012 with an overall subsidy cap of Rs. 1972 crores from the date of the Resolution up to 31.03.2012, which was expected to leverage an investment of Rs. 46,900 crore, with sectoral investment shares of 26% for spinning, 13% for weaving, 21% for processing, 8% for garmenting and 32% for others.  Since the earmarked subsidy cap of Rs.1972 crores was not fully utilized and to avoid any hiatus as the 12th Plan TUFS proposals were not finalized, the Ministry of Textiles in accordance with Ministry of Finance, Department of Expenditure’s O.M. NO.1(3)/P.F.II/2011 dated 23.4.2012 allowed extension of R-TUFS into the first year of 12 th Plan to the extent of availability of unutilized subsidy cap.

The financial and operational parameters of the Restructured TUFS in respect of loans sanctioned under the scheme would be as follows: -

i). A reimbursement of 5% on the interest charged by the lending agency on a project of technology upgradation in conformity with the Scheme. However, for spinning machinery the scheme will provide 4% for new stand alone / replacement / modernisation of spinning machinery; and 5% for spinning units with matching capacity in weaving / knitting / processing / garmenting.

ii). Cover for foreign exchange rate fluctuation / forward cover premium not exceeding 5% for all segments except for new stand alone / replacement / modernisation of spinning machinery, the foreign exchange rate fluctuation / forward cover premium will be 4%.

iii). Additional option to the powerlooms 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 will be Rs.1 crore. A minimum of 15% equity contribution from beneficiaries will be ensured.

iv). An option to SSI textile and jute sector to avail of 15% Margin Money subsidy 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.45 lakh. A minimum of 15% equity contribution from beneficiaries will be ensured.

v). 5% interest reimbursement plus 10% capital subsidy for specified processing, garmenting and technical textile machinery.

vi). The Common Effluent Treatment Plants (CETPs) will not be covered under Restructured TUFS.

vii). 5% interest reimbursement plus 10% capital subsidy for brand new shuttleless looms.

viii). Interest subsidy/capital subsidy/Margin Money subsidy on the basic value of the machineries excluding the tax component for the purpose of valuation.

ix). 25% capital subsidy in lieu of 5% interest reimbursement on purchase of the new machinery and equipments for the pre-loom & post-loom operations, handlooms/up-gradation of handlooms and testing & Quality Control equipments, for handloom production units.

x). 25% capital subsidy in lieu of 5% interest reimbursement on benchmarked machinery of silk sector as applicable for Handloom sector.

xi). The Scheme will cover only automatic shuttleless looms of 10 years’ vintage and with a residual life of minimum 10 years. The value cap of the automatic shuttleless looms will be decided by the Technical Advisory-cum-Monitoring Committee (TAMC).

xii). Investments like factory building, pre-operative expenses and margin money for working capital will be eligible for benefit of reimbursement under the scheme meant for apparel sector and handloom with 50% cap. In case apparel unit / handloom unit is engaged in any other activity, the eligible investment under this head will only be related to plant & machinery eligible for manufacturing of apparel / handlooms.

xiii). Interest reimbursement will be for a period of 7 years including 2 years implementation / moratorium period.

xiv). The subsidy in restructured cases will be restricted to the quantum approved in the initial loan repayment schedule by the lending agency and submitted to the Office of the Textile Commissioner in the prescribed format.

xv). Common Effluent Treatment Plant (CETP) and other investments like, energy saving devices, in-house R&D, IT including ERP, TQM including adoption of ISO / BIS standards, CPP and electrical installations etc. will not be eligible under Restructured TUFS.

xvi). There will be an overall subsidy cap of Rs. 1972 crores from the date of this Resolution to 31.03.2012, which is expected to leverage an investment of Rs.46900 crore, with sectoral investment shares of 26% for spinning, 13% for weaving, 21% for processing, 8% for garmenting and 32% for others.

**Annex - II**

| **Allocations and Utilisation against Payments for  Committed Liabilities**   |                                  |                        |                  |    |
|-------------------------------------------------------------------------------|----------------------------------|------------------------|------------------|----|
| **Year**                                                                      | **( Rs. Crore) As on 24.7.2015** |                        |                  |    |
|                                                                               | **Budget Allocations**           | **Revised Allocation** | **Expenditures** |    |
| **2012-13**                                                                   | 2914.00                          | **2323.03**            | **2151.34**      |    |
| **2013-14**                                                                   | 2400.00                          | **1956.16**            | **1730.58**      |    |
| **2014-15**                                                                   | 2300.00                          | **1946.02**            | **1884.31**      |    |
| **2015-16**                                                                   | **1520.00**                      | …                      | **437.58**       |    |
| **Total**                                                                     |                                  | **6225.21**            | **6203.81**      |    |

| **Annexure-III**  **STATE-WISE DETAILS OF THE SUBSIDY RELEASED BY MINISTRY OF TEXTILES UNDER R-TUFS**  **(Position as on 24.07.2015)**  **(in Rs. Crore)**   |                         |             |             |             |             |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------|-------------|-------------|-------------|-------------|
|                                                                                                                                                              |                         |             |             |             |             |
| **Sr.**  **No.**                                                                                                                                             | **State Name**          | **2012-13** | **2013-14** | **2014-15** | **2015-16** |
| 1                                                                                                                                                            | **ANDHRA PRADESH**      | 20.67       | 20.02       | 36.95       | 10.28       |
| 2                                                                                                                                                            | **ASSAM**               | 0.15        | 0.62        | 0.72        | 0.17        |
| 3                                                                                                                                                            | **BIHAR**               | 0.09        | 0.02        | 0.02        | 0.01        |
| 4                                                                                                                                                            | **CHANDIGARH**          | 1.82        | 1.03        | 1.00        | 0.45        |
| 5                                                                                                                                                            | **CHATTISGARH**         | 0.02        | 2.94        | 0.75        | 0.43        |
| 6                                                                                                                                                            | **DADRA & NAGAR**   | 23.22       | 19.37       | 25.18       | 7.11        |
| 7                                                                                                                                                            | **DAMAN & DIU**     | 3.60        | 2.49        | 1.42        | 0.35        |
| 8                                                                                                                                                            | **DELHI**               | 11.48       | 7.62        | 7.90        | 2.16        |
| 9                                                                                                                                                            | **GUJARAT**             | 182.91      | 145.80      | 172.15      | 54.56       |
| 10                                                                                                                                                           | **HARYANA**             | 14.75       | 17.91       | 8.12        | 3.19        |
| 11                                                                                                                                                           | **HIMACHAL PRADESH**    | 2.80        | 6.29        | 10.84       | 3.36        |
| 12                                                                                                                                                           | **JAMMU & KASHMIR** | 0.22        | 0.44        | 1.55        | 0.00        |
| 13                                                                                                                                                           | **JHARKHAND**           | 0.00        | 0.48        | 0.07        | 0.00        |
| 14                                                                                                                                                           | **KARNATAKA**           | 22.19       | 18.60       | 20.21       | 7.07        |
| 15                                                                                                                                                           | **KERALA**              | 0.53        | 0.26        | 0.69        | 0.23        |
| 16                                                                                                                                                           | **MADHYA PRADESH**      | 22.72       | 90.40       | 90.22       | 22.57       |
| 17                                                                                                                                                           | **MAHARASHTRA**         | 79.20       | 72.86       | 73.16       | 19.86       |
| 18                                                                                                                                                           | **ORISSA**              | 0.50        | 0.00        | 0.12        | 0.00        |
| 19                                                                                                                                                           | **PONDICHERY**          | 0.29        | 0.00        | 0.04        | 0.00        |
| 20                                                                                                                                                           | **PUNJAB**              | 81.89       | 87.63       | 96.22       | 30.89       |
| 21                                                                                                                                                           | **RAJASTHAN**           | 33.67       | 42.81       | 32.71       | 12.31       |
| 22                                                                                                                                                           | **TAMIL NADU**          | 34.79       | 33.58       | 33.74       | 12.70       |
| 23                                                                                                                                                           | **UTTAR PRADESH**       | 7.04        | 17.62       | 5.54        | 1.46        |
| 24                                                                                                                                                           | **UTTARANCHAL**         | 0.41        | 6.92        | 2.81        | 1.33        |
| 25                                                                                                                                                           | **WEST BENGAL**         | 10.98       | 13.31       | 5.98        | 2.02        |
| **Total**                                                                                                                                                    |                         | **555.94**  | **609.04**  | **628.10**  | **192.51**  |

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