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Feb 21, 2012, 02.46 PM IST | Source: PTI

Ministry may extend revised TUF scheme to Blackout Period

Ministry may extend revised TUF scheme to Blackout Period

Mumbai, Feb 20 (PTI) The textile ministry is likely to extend the revised Technology Upgradation Fund Scheme(TUFS) to the 'blackout period', a top ministry official today here said. "We can consider going to the blackout period, subject to maintaining the same discipline as that of the revised one. So going in that direction, probably if everything goes as we are planning, the revised TUFS coverage may be extended to the blackout period," textile commissioner AB Joshi told PTI here on the sidelines of an event. The blackout period for the industry is considered to be from June 2010 to April 2011. The government had suspended the modified TUFS in June 2010 and restored the revised TUFS in April 2011 and no funding support was available to the industry in this period. The Technology Upgradation Fund Scheme(TUFS) was launched in 1999 and has since then undergone three changes--revised TUFS and modified TUFS. The move to extend the scheme comes as the industry has been confused with different schemes under the overall TUFS, leading to poor claims from the industry. So far only Rs 160 crore has been disbursed under the revised TUFF scheme this fiscal, Joshi said, adding we hope there will be at least Rs 400 crore worth claims this fiscal. During the 11th Plan, the government has enhanced the TUFS allocation to Rs 15,404 crore from Rs 8,000 core. TUFS has helped catalyse an investment of Rs 2 lakh crore since its inception in different sectors. The additional allocation is expected to catalyse an additional investment of Rs 46,900 crore. "If the current system had a cap, this (blackout period) will also have a cap. If the current has a sectoral cap, this will also have a sectoral cap. So, we are working out the blackout period what was the sectoral allocation and whether that comes into the overall whatever allocation has been done," he said. Joshi further said there were primary indications, from all the information we gathered by the interministerial steering committee which held a meeting on February 2, that this comes within this cap. However, he added that the restructured TUFF scheme will not be open-ended and will have a limit. "Within the limit, we have value change component, in weaving, processing, spinning, garmenting.. so these sectors has seen a differential role," he said. Earlier, one could invest anytime, any amount and tell the government whatever amount they have invested and ask for their capital cost. "So that demand was erratic and uncontrolled," he added.

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