Ministry considers extending TUFS to ‘blackout period’

The Textiles Ministry is considering extending the revised

Technology Upgradation Fund Scheme (TUFS) to the ‘blackout period’, according to textile commissioner A B Joshi. “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," Joshi said recently.

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. TUFS was launched in 1999 and has since changed to 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 crores has been disbursed under the revised TUF scheme this fiscal, Joshi said, adding we hope there will be at least Rs 400 crores worth claims this fiscal. During the 11th Plan, the government has enhanced the TUFS allocation to Rs 15,404 crore from Rs 8,000 crores.

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 crores.