Govt to release Rs 2,546-cr subsidy for textiles in 3 days: Maran

The Government, on Thursday, announced the immediate release of a subsidy of Rs 2,546 cr for the textile industry under the Technology Up gradation Fund scheme (TUFs) to support its modernization efforts for meeting market challenges and enabling it to stay competitive in quality and price.

Announcing this at a news conference here, the Union Textile Minister, Mr Dayanidhi Maran, said it is for the first time that such a large amount of subsidy is being released in a single shot. He said the amount would be credited to bank accounts of beneficiaries in the record time of 3 working days. With this release, the subsidy would be cleared up to June 30, 2009. In 2008-09, the Government released Rs 2,632 cr under the scheme.

Under TUFS, the Government extends 10 per cent capital subsidy and 5 % interest subsidy on installation of machineries and for giving out machinery as well by the various segment of the textile industry.As Rs 3,150 cr has been provided in the Budget for release to the industry under the scheme, Mr Maran said with the release of the bulk amount now, the Ministry of Textiles would seek the intervention of the Prime Minister and the Finance Minister for more funds to the industry for the remaining part of the fiscal. Out of the total subsidy of Rs 2,546 cr, Tamil Nadu corners the substantial chunk of Rs 643 cr by 3,286 applicants, followed by Maharashtra at 1,186 applicants for Rs 637 cr, Punjab for Rs 352 cr by 1,543 applicants and Gujarat at 4,051 applicants for Rs 275 cr.

The Minister also announced the setting up of a 41-member Group under the Chairmanship of the Textiles Secretary, Ms Rita Menon, to came out with a National Fibre Policy, designed to make India self-sufficient in fibre utilization and export requirements. He said the Group has been given a command to come out with a report within 3 months.