Cabinet set to sanction 7,000 crore interest subsidy to textile units for modernisation
After a long wait by the industry, the government is likely to sanction tomorrow additional Rs 7,000 crore for interest subsidy to the textile units for modernisation. The proposal is expected to come up before the Cabinet Committee on Economic Affairs, sources said.
The government had sanctioned Rs 8,000 crore for the 11th Plan (2007-12) under the Textile Upgradation Fund Scheme (TUFS) to be provided as interest subvention of five per cent on the loans for modernisation of the industry. The scheme is in operation for the last 11 years.
Owing to popularity of the scheme and the industry committing investment, the entire corpus of the 11th Plan was exhausted by June 2010.
Since then, the USD 63 billion textiles industry has been pressing for enhancement of the money under the TUFs, taking it to Rs 15,000 for the current Plan period.
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